SEO Riders:
– President Tinubu approves ₦4 trillion bond to settle verified GENCO liabilities.
– Power Minister commends reform progress under the Electricity Act 2023 and investor growth.
– Urgent liquidity injection needed to prevent grid shutdown and foster cost-reflective tariffs.
Nigeria’s electricity sector faced a looming crisis as government liabilities to power generation companies (GENCOs) reached a staggering ₦4 trillion. At a high-level meeting in Abuja on July 25, 2025, President Bola Tinubu announced his approval for an anticipatory ₦4 trillion bond programme, contingent on the outcome of rigorous audits to verify legitimate claims. Tinubu appealed to stakeholders—including GENCOs and financial institutions—for patience as the administration works to authenticate and resolve longstanding debts originating from underfunded tariff shortfalls and contractual gaps.
Power Minister Adebayo Adelabu lauded the President’s active engagement and sector reforms—highlighting the passage of the Electricity Act of 2023, introduction of the Integrated National Electricity Policy, and the mobilization of over US $2 billion in private capital. He reported a 70% revenue increase from ₦1 trillion in 2023 to ₦1.7 trillion in 2024 and a reduction of subsidies by more than ₦700 billion. Installed capacity has grown to 14,000 MW with a peak generation of 5,801 MW, and no grid collapse has occurred in 2025.
