Nigeria has approved a ₦4 trillion bond deal to settle decade-old debts to power generation firms and gas suppliers, in a move officials say could help stabilise electricity and attract new investment.
The Presidential Power Sector Debt Reduction Plan, endorsed by President Bola Tinubu and the Federal Executive Council in August, aims to end years of payment delays that have strained the country’s fragile power network.
“This is the most credible effort we’ve seen in years,” said Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power. “It tackles the root liquidity challenges holding back power generation and gives investors renewed confidence.”
Olu Verheijen, the President’s energy adviser, said the intervention will help modernise Nigeria’s grid, close metering gaps, and align tariffs with real costs. “We’re moving from crisis response to sustained delivery,” she said. “This plan lays the foundation for private capital and lasting power reform.”
Industry leaders like Kola Adesina of Sahara Group hailed the bond plan as a “bold and transformative step” that signals the government’s seriousness about reform.
The government said bilateral talks will begin soon to finalise settlement agreements that balance fiscal realities with the financial challenges of generation companies.
Officials hope the bond settlement, Nigeria’s largest energy intervention in over a decade, will revive investor confidence and boost power generation that currently operates below 40% capacity.
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