A ₦4 trillion bond program aimed toward clearing money owed owed to energy era firms (GENCOs) was introduced by President Bola Tinubu, who appealed to the ability firms to grant the federal authorities extra time to finish the verification and validation of the longstanding money owed.
Bayo Onanuga, Presidential Spokesman, in an announcement, mentioned the President made the pledge, throughout a gathering with members of the Affiliation of Energy Technology Firms, led by Sani Bello on the Presidential Villa in Abuja. He famous that the President assured them of his administration’s dedication to resolving the liquidity challenges within the energy sector.
On the assembly, Olu Verheijen, Particular Adviser to the President on Power, disclosed {that a} ₦4 trillion bond programme has obtained anticipatory approval from President Tinubu to deal with the liquidity shortfall within the sector.
The president acknowledged the historic liabilities inherited from earlier administrations and pledged transparency and equity in addressing them.
“I settle for the belongings and liabilities of my predecessors, and there’s no query about that. However that acceptance should be on credible grounds. I have to put on the audit cap of verifiability, authenticity, and the truth that this inheritance just isn’t a mere deodorant however a help construction for vital financial and industrial promotion.”
The President emphasised the necessity for endurance from GENCOs and monetary establishments, noting that authorities businesses are actively partaking audit and authorized companies to scrutinise the claims.
“We’re right here. So promote it to your different colleagues. Give us time to do verification and validation of the numbers,” he mentioned.
Whereas reaffirming his perception in a market-driven electrical energy sector, the President mentioned the trade’s long-neglected legacy points are actually receiving the eye they deserve.
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“This can be a longstanding concern that’s now being handled. I understand how a lot now we have been capable of save on gas subsidies. We launched the choice, CNG, to carry aid again to the folks.”
President Tinubu additionally emphasised the federal government’s dedication to making a secure funding surroundings and avoiding excessive measures, corresponding to financial institution asset foreclosures, towards the era firms.
“To our pals within the banking sector, I ask that we keep away from foreclosures. Sharpen your pencils, however maintain an eraser useful. Let’s persevere collectively.”
Describing electrical energy as “an important discovery of humanity within the final 1,000 years,” the President reaffirmed that entry to electrical energy is key to financial development and human dignity.
Verheijen, in her remarks, attributed the liquidity disaster to “a mixture of unfunded tariff shortfalls and market shortfalls” which have constructed up over a decade.
She acknowledged that as of April 2025, the Federal Authorities is carrying a verified publicity of ₦4 trillion in money owed to GENCOs, an accumulation courting again to 2015.
“Now we have since sat with 27 GENCOs—not all of them are right here right now—and reviewed their PPAs and gasoline gross sales agreements to know the legitimacy of their claims. The GENCOs claimed about ₦4 trillion from 2015 to the tip of 2023,” she mentioned.
Based on her, the Nigerian Bulk Electrical energy Buying and selling Firm (NBET)—the company that contractually mediates between GENCOs and the federal government—has validated ₦1.8 trillion of those claims thus far.
“Since that interval, now we have had ₦200 billion in unfunded subsidies which have amassed the federal authorities’s legal responsibility.
“So, as of April 2025, the full publicity that we’re carrying in the meanwhile is ₦4 trillion,” she added.
Nonetheless, Verheijen cautioned that the determine stays topic to downward revision, pending remaining validation.
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“Whereas there’s an anticipatory approval of this ₦4 trillion bond programme, it’s topic to negotiations and remaining settlement of agreements. Solely the quantities that the federal authorities validly owes are the issues that may make it into the issuance by DMO,” she defined.
Adebayo Adelabu, Energy Minister, recommended President Tinubu for the eye given to the ability sector, stating that the administration’s reforms have restored investor confidence and improved efficiency throughout the electrical energy worth chain.
“Your Excellency, your presence at this assembly is a transparent testomony to your unwavering dedication to the sustainability, stability, and long-term improvement of Nigeria’s energy sector. Below your management, now we have recorded vital milestones in lower than two years,” the Minister mentioned.
Adelabu mentioned the Tinubu administration signed into regulation the Electrical energy Act, 2023, which decentralises and liberalises the electrical energy market. This was the primary laws signed by the President upon assuming workplace.
He famous that the administration has launched Nigeria’s first Built-in Nationwide Electrical energy Coverage in 24 years to drive coherence in sector planning and supply.
He disclosed that over $2 billion in new non-public capital has been interested in broaden electrical energy entry nationwide. On the identical time, the sector’s annual income has grown by 70 per cent—from ₦1 trillion in 2023 to ₦1.7 trillion in 2024—leading to a discount of presidency subsidy obligations by over ₦700 billion.
He added that put in era capability has grown from 13,000 MW to 14,000 MW, with an all-time peak era of 5,801 MW and a file most day by day vitality supply of 120,370 MWh, achieved on March 4, 2025.
Based on him, there was no nationwide grid collapse in 2025, a direct results of interventions underneath the Presidential Energy Initiative, which has added over 700MW of transmission capability.
He reported vital progress in narrowing Nigeria’s metering hole by the ₦700 billion Presidential Metering Initiative, funded by way of FAAC, and the World Financial institution-supported Distribution Sector Restoration Programme (DISREP), which has already delivered 300,000 sensible meters out of three.45 million procured.
Whereas acknowledging these strides, Adelabu cautioned that the sector is grappling with an pressing liquidity disaster that might undermine the sustainability of ongoing reforms and investments.
“Mr. President, given the grave implications of this debt overhang, together with the chance of a nationwide shutdown of era belongings, I humbly search your instant help for defraying these obligations, even when partially, over an outlined interval,” the Minister appealed.
He urged the President to proceed supporting structural reforms to make sure a resilient and financially viable energy market.
In separate remarks, enterprise leaders Tony Elumelu and Kola Adesina appealed for pressing intervention to protect operations and encourage additional funding within the sector.
“Mr. President, we’ve come to you as a final hope. The producing firms are closely indebted to banks, and foreclosures threats are actual, not as a result of we’re not doing our jobs, however as a result of the system owes us trillions,” Elumelu mentioned.
He recommended the Tinubu administration for restoring the integrity of oil manufacturing and banking stability.
“Earlier than you took workplace in 2023, we misplaced 97% of our day by day oil manufacturing. Right this moment, we’re retaining 98%. That’s transformation. Traders are seeing higher stability and predictability,” he mentioned.
On electrical energy, Elumelu added: “We don’t want energy to finish your transformation, we’d like energy to allow it. Energy is vital to unlocking Nigeria’s full potential. We urge you to assist resolve this debt drawback.”
Adesina reiterated the necessity for instant liquidity help whereas elevating considerations over gasoline provide shortfalls.
“Liquidity is the oxygen of our enterprise. With out pressing intervention, era capability will stall, and Nigeria’s industrial and financial ambitions can be jeopardised.
“The crops within the Afam axis are underperforming as a result of now we have not paid gasoline suppliers. We suggest unlocking 800 million cubic ft of gasoline by NLNG to spice up provide to those energy crops,” he mentioned.
The assembly was attended by the Chief of Workers to the President, Femi Gbajabiamila; the Coordinating Minister of the Economic system and Minister of Finance, Mr. Wale Edun; the Minister of Info and Nationwide Orientation, Alhaji Mohammed Idris; and different senior authorities officers, regulators, and stakeholders in Nigeria’s electrical energy trade.
