The Federal Government has finalized the implementation framework for the ₦4 trillion Presidential Power Sector Debt Reduction Plan — a major initiative by President Bola Ahmed Tinubu aimed at restoring financial stability, investor confidence, and long-term growth in Nigeria’s electricity market.
According to a statement signed by Senan Murray Media and Communications Unit Office of the Special Adviser to the President on Energy Abuja, Nigeria, the agreement was reached following a high-level meeting held on October 7, 2025, in Abuja, involving the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Minister of Power, Chief Bayo Adelabu; and the Special Adviser to the President on Energy, Mrs. Olu Verheijen, alongside senior executives of the nation’s electricity generation companies (GenCos).
The parties agreed on modalities for settling the long-standing debts owed to power producers, including the commencement of bilateral negotiations to finalize settlement agreements that reflect both fiscal realities and the financial challenges facing the GenCos.
Approved by President Tinubu and endorsed by the Federal Executive Council in August 2025, the plan authorizes the issuance of up to ₦4 trillion in government-backed bonds to clear verified arrears owed to generation companies and gas suppliers. It represents the largest intervention in Nigeria’s power sector in more than a decade.
Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power, described the initiative as “a credible and systematic effort to tackle the root liquidity challenges in the power sector,” while Kola Adesina, Group Managing Director of Sahara Group, said it “signals renewed confidence in government’s commitment to power sector reform.”
According to Mrs. Verheijen, the debt reduction plan forms part of a broader effort to create an enabling environment for private investment in the power industry. “By modernizing the grid, improving distribution, and aligning tariffs with efficient costs, we are shifting from crisis management to sustainable delivery and investor confidence,” she said.
Minister Edun emphasized that the reforms are designed not just to clear arrears but to rebuild the structural foundations of the power market. “We are creating the conditions for a sector that works for investors, citizens, and future generations — a power sector that drives industrialization, job creation, and inclusive economic growth,” he said.
The initiative is being jointly implemented by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy, in collaboration with the Nigerian Bulk Electricity Trading Plc (NBET) and other key stakeholders.
