The Federal Government has finalized a comprehensive plan to deploy ₦4 trillion in government-backed bonds aimed at settling verified arrears owed to power generation companies (GenCos) and gas suppliers.
Mrs. Olu Verheijen, the Special Adviser to the President on Energy, confirmed this in a statement on Tuesday .
She explained that these bonds are part of an initiative approved by President Bola Tinubu and the Federal Executive Council, designed to address deep-rooted structural challenges in Nigeria’s power sector and foster an environment conducive to massive private sector investment.
According to the statement, the agreement was reached during a high-level meeting attended by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Minister of Power, Chief Bayo Adelabu; and Mrs. Verheijen.
The meeting talked on reviewing and finalizing settlement modalities, with a consensus to engage in bilateral negotiations aimed at deaigning comprehensive settlement agreements that are sustainable amid Nigeria’s fiscal realities and the financial constraints faced by GenCos.
Mrs. Verheijen, the statement said, emphasized that the intervention marks the largest-scale debt resolution effort in over a decade.
It seeks to eliminate legacy debts that have constrained the sector’s growth, improved the bottom lines of utility companies, and enhanced the reliability of power supply nationwide.
“This is a major step by the federal government towards restoring financial stability and investor confidence within Nigeria’s electricity market,” the statement said.
The statement added that the initiative aligns with President Tinubu’s strategic vision of modernizing the electricity infrastructure—improving grid systems, expanding distribution networks, and scaling embedded generation—aimed at creating a favorable environment for sustainable growth and private investment.
