President Bola Tinubu has approved a N4 trillion bond to settle verified debts owed to Generation Companies (GenCos) and gas suppliers
This was revealed according to the Minister of Power, Adebayo Adelabu, speaking at the Nigeria Energy Summit in Lagos.
Alongside this, a targeted subsidy framework is being developed to support vulnerable households while paving the way for full commercialization of the power sector.
On sector commercialization, Adelabu said the government is intensifying efforts to strengthen revenue, liquidity, and investor confidence. “Through tariff policy reforms that introduced cost-reflective tariffs for select consumers, supply reliability has improved while energy costs for industries have fallen. Revenue for the industry rose by 70 per cent to N1.7 trillion in 2024 compared to the previous year, and is projected to surpass N2 trillion in 2025,” he stated.
The Minister added that the National Electricity Regulatory Commission (NERC) and State Regulatory Commissions are collaborating to monitor sector performance and enforce improvements across utilities.
Despite these gains, Adelabu acknowledged ongoing challenges, including under-capitalization among several Distribution Companies (DisCos) and a heavy debt burden that has constrained operational efficiency and service delivery. To address this, the government plans to introduce minimum capital adequacy requirements during license renewals to strengthen the financial health and liquidity of the utilities.
In terms of infrastructure, the Minister noted that the Federal Government has launched targeted national programs to modernize and expand the national grid. “Under Phase Zero of the Presidential Power Initiative (PPI), we have enhanced transmission capacity, improved grid stability, and bolstered overall system reliability, achieving over 700MW of additional transmission capacity,” he said.
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