FG Moves to End Power Shortage, Approves N4 Trillion Bond to Clear GenCo, Gas Debts

FG has moved to end power shortage with the approval of N4 trillion bond to clear GenCo and Gas Debts.

NewsOnline Nugeria reports that Nigeria’s persistent power supply challenges may soon be addressed following a new initiative by the Federal Government.

Speaking at the ongoing Nigeria Energy Summit in Lagos, Minister of Power, Adebayo Adelabu, announced that President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to Generation Companies (GenCos) and gas suppliers.

Adelabu also revealed that the government is developing a targeted subsidy framework to protect vulnerable households while steering the country toward full commercialization and a sustainable power sector.

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On sector reforms, the Minister disclosed that the government is deepening power sector commercialization to enhance revenue, liquidity, and investor confidence.

“Through tariff policy reforms that introduced cost-reflective tariffs for select consumers, power supply reliability has improved, while energy costs for industries have reduced. As a result, industry revenue increased by 70% to ₦1.7 trillion in 2024 and is projected to exceed ₦2 trillion in 2025,” Adelabu said.

He added that the National Electricity Regulatory Commission (NERC) and state regulators are working closely to improve performance across all utilities.

However, Adelabu acknowledged that the sector still faces under-capitalization and debt challenges, particularly among Distribution Companies (DisCos), which have affected operational efficiency and service delivery.

To address this, he said the government plans to introduce a minimum capital adequacy requirement as part of the license renewal process to strengthen the financial health and liquidity of DisCos.

On infrastructure development, the Minister noted that the Federal Government has launched several national programmes to expand and modernize the national grid.

“Under Phase Zero of the Presidential Power Initiative (PPI), we have already achieved over 700MW of additional transmission capacity, enhancing grid stability and overall system reliability,” he stated.