The Federal Government of Nigeria has finalized the implementation framework for a ₦4 trillion government-backed bond to settle verified arrears owed to power Generation Companies (GenCos) and gas suppliers. The initiative, known as the Presidential Power Sector Debt Reduction Plan, was approved by President Bola Tinubu and endorsed by the Federal Executive Council (FEC) in August 2025.
The plan aims to address long-standing liquidity challenges in Nigeria’s power sector that have hindered investment and reliable electricity supply. The bond issuance—the largest intervention in over a decade—is designed to clear legacy debts, strengthen utility balance sheets, and attract private sector-led investment for sustainable growth.
Industry leaders, including Tony Elumelu (Heirs Holdings/Transcorp Power) and Kola Adesina (Sahara Group), praised the move as a credible and transformative reform, signaling renewed confidence in the sector’s reform process.
According to Olu Verheijen, Special Adviser to the President on Energy, the initiative will also support broader sectoral reforms such as closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting for vulnerable consumers, and restoring regulatory trust. She emphasized that the goal is to create conditions for long-term private investment, grid modernization, and sustainable power delivery.