Bayo Adelabu, minister of power, says President Bola Tinubu has approved a N4 trillion bond to settle verified debts owed to power generation companies (GenCos) and gas suppliers.
Adelabu spoke on Monday during a forum at the Nigeria Economic Summit (NES) held in Abuja.
“To stabilize the market, Mr. President has approved a N4 trillion bond to clear verified GenCo and gas supply debts,” he said.
“Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and viable industry.”
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The minister added that the government is deepening power sector commercialisation to strengthen revenue, liquidity, and investor confidence.
He said power supply reliability has improved, leading to lower energy costs for industries through tariff policy reforms that introduced cost-reflective rates for selected consumers.
Adelabu said the power industry revenue increased by 70 percent to N1.7 trillion in 2024.
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He added that the sector’s revenue is expected to exceed N2 trillion in 2025.
On June 3, the presidency said internal approvals were underway to resolve the N2 trillion legacy debt owed to electricity generation companies as part of efforts to stabilise the power sector.
GenCos had said they were owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts) by the federal government and stakeholders for electricity generated, warning that the non-payment could hamper their operations.
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