The Federal Government has approved a N4 trillion bond, to settle debts owed to power generation companies (GenCos) and gas suppliers. This move aims to stabilize Nigeria’s electricity market, restore investor confidence, and boost the power sector.
The approved bond will help clear verified debts, alleviate financial pressures on operators, and encourage private sector participation in the electricity market. Key benefits include:
– Debt Relief: Settling GenCos’ debts will relieve operational constraints and improve power supply reliability.
– Revenue Growth: Power industry revenue increased by 70% to N1.7 trillion in 2024, expected to exceed N2 trillion in 2025.
– Infrastructure Development: The Presidential Power Initiative aims to add 7,000 MW to the national grid, enhancing transmission capacity and grid stability.
The bond is part of President Bola Tinubu’s broader efforts to reform Nigeria’s fiscal framework, strengthen local refining capacity, and ensure sustainable power sector development.
