The Federal Government, in collaboration with power-generating companies, has concluded a payment framework for the presidential power sector debt.
A statement released on Tuesday by the Office of the Special Adviser to the President on Energy, Olu Verheijen, said the initiative is expected to stabilise the electricity market financially and boost investor confidence.
She said President Bola Tinubu approved the debt resolution framework to remove structural barriers and create a foundation for large-scale private sector-driven investments and long-term economic growth.
On October 7, 2025, in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Power, Bayo Adelabu, and Verheijen met with senior GenCos executives to review the settlement process for unpaid debts.
Verheijen stated that the meeting ended with an agreement to proceed with bilateral negotiations to establish final settlement terms that reflect both government fiscal realities and the financial conditions of GenCos.
Approved by the president and ratified by the Federal Executive Council (FEC) in August 2025, the plan allows for the issuance of up to ₦4 trillion in government-backed bonds to clear verified debts owed to generation companies and gas suppliers.
This intervention, the largest in more than ten years, targets a long-standing debt burden that has stalled investments, weakened utility finances, and disrupted consistent power supply nationwide.
During the October 7 session, Verheijen quoted Chairman of Heirs Holdings and Transcorp Power, Tony Elumelu, as saying, “For the first time in years, we are seeing a credible and systematic effort by government to tackle the root liquidity challenges in the power sector… We commend President Tinubu and his economic team for this bold and transformative step.”
Similarly, Group Managing Director of Sahara Group, Kola Adesina, was quoted as saying, “This initiative is significant in every respect. It gives us renewed confidence in the reform process and a clear signal that the government is serious about building a sustainable power sector.”
Verheijen noted that beyond clearing outstanding balances, the debt settlement framework marks a strategic shift in Nigeria’s electricity market, with restored financial capacity set to encourage new investments in power generation, upgrade the national grid, and improve electricity reliability for households and industries. This, she said, will drive industrial growth, job creation, and inclusive economic development.
She added that the government’s priorities include modernising the grid, expanding distribution capacity, and scaling embedded generation.
“By closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting to support the poor and vulnerable, and restoring regulatory trust, we are shifting from crisis response to sustained delivery and building the confidence needed to attract large-scale private capital. These reforms go beyond liquidity,” she said.
Edun added, “They are about rebuilding the fundamentals so that Nigeria’s power sector works for investors, for citizens, and for the next generation. This is how we create the enabling conditions for sustained private investment and transform reliable power into a catalyst for economic growth.”
The Presidential Power Sector Debt Reduction Plan is being executed through a collaboration between the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy, alongside the Nigerian Bulk Electricity Trading (NBET) Plc and other stakeholders.