The Federal Government and electricity generation companies (GenCos) have finalized the implementation framework for a ₦4 trillion Presidential Power Sector Debt Reduction Plan, a major intervention aimed at restoring financial stability and investor confidence in Nigeria’s power sector.
In a statement released by Mrs. Olu Verheijen, Special Adviser to the President on Energy, the initiative—approved by President Bola Ahmed Tinubu—seeks to address long-standing structural issues and lay the foundation for extensive privatization and sustained investment in the electricity industry.
The agreement was reached following a high-level meeting in Abuja on October 7, 2025, 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, alongside senior GenCo executives.
According to the statement, the meeting concluded with a consensus on “conducting bilateral negotiations to finalize settlement agreements that balance fiscal realities with the financial constraints of the GenCos.”
The ₦4 trillion bond-backed intervention, endorsed by the Federal Executive Council (FEC) in August, is the largest debt resolution initiative in over a decade. It is designed to clear verified arrears owed to GenCos and gas suppliers—debts that have crippled investment, weakened utility balance sheets, and hindered reliable electricity delivery nationwide.
Business leaders hailed the move as a turning point.
“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,” said Mr. Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power.
Similarly, Mr. Kola Adesina, Group Managing Director of Sahara Power Group, described it as “a significant and confidence-restoring reform that signals government seriousness about building a sustainable electricity market.”
Mrs. Verheijen emphasized that beyond clearing debts, the initiative will “enable new investments in generation capacity, modernize grid infrastructure, and deliver reliable power to homes and businesses.”
She added that the Tinubu administration remains focused on closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting, and restoring regulatory trust, all aimed at shifting from crisis management to sustained electricity delivery and economic growth.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
