The Federal Authorities has concluded implementation frameworks for a N4 trillion government-backed bond aimed toward settling verified arrears owed to energy Technology Corporations (GenCos) and gasoline suppliers.
This was revealed by the Particular Adviser to the President on Power, Mrs. Olu Verheijen, in an announcement shared on X (previously Twitter) on Tuesday in Abuja.
In accordance with the assertion, the settlement was reached at a high-level assembly between federal authorities officers and senior executives of GenCos to assessment modalities for clearing the excellent money owed.
The assertion stated the assembly concluded with a consensus on the subsequent steps, together with bilateral negotiations to finalise complete settlement agreements that steadiness fiscal realities with the monetary challenges going through the GenCos.
The assertion famous, “Permitted by President Tinubu and endorsed by the Federal Government Council (FEC) in August 2025, the plan authorizes the issuance of as much as N4 trillion in government-backed bonds to settle verified arrears owed to era firms and gasoline suppliers. This intervention, the most important in over a decade, addresses a legacy debt overhang that has constrained funding, weakened utility steadiness sheets, and hindered dependable energy supply throughout the nation.”
GenCos commend Tinubu
The assertion additionally quoted Technology Firm (GenCo) house owners commending President Tinubu’s intervention.
Tony Elumelu, Chairman of Heirs Holdings and Transcorp Energy stated:
“For the primary time in years, we’re seeing a reputable and systematic effort by authorities to deal with the foundation liquidity challenges within the energy sector. We commend President Tinubu and his financial workforce for this daring and transformative step.”
Additionally, Kola Adesina, Group Managing Director of Sahara Group, echoed this sentiment: “This initiative is important in each respect. It provides us renewed confidence within the reform course of and a transparent sign that the federal government is severe about constructing a sustainable energy sector.”
FG says intervention to assist shut metering gaps
The Particular Adviser stated that the step would additionally assist in closing metering gaps, aligning tariffs with environment friendly prices, bettering subsidy concentrating on to assist the poor and susceptible, and restoring regulatory belief.
“The sector is shifting from disaster response to sustained supply and constructing the boldness wanted to draw large-scale personal capital,” she stated.
Backstory
In July, President Bola Tinubu permitted a N4 trillion bond initiative aimed toward addressing the liquidity shortfall in Nigeria’s energy sector.
This follows a gathering between President Tinubu and representatives of energy era firms (GenCos) on the Presidential Villa in Abuja.
President Tinubu reaffirmed his administration’s dedication to resolving the monetary challenges bedeviling the sector.
He acknowledged the historic liabilities inherited from earlier administrations and guaranteed the GenCos that his authorities would strategy the problem with transparency and equity.
The Particular Adviser to the President, Ms. Verheijen, attributed the liquidity disaster to “a mixture of unfunded tariff shortfalls and market shortfalls” that has constructed up over a decade.
She acknowledged that as of April 2025, the Federal Authorities is carrying a verified publicity of N4 trillion in money owed to GENCOs, an accumulation courting again to 2015.
What you need to know
In September, the Bureau of Public Enterprises (BPE) introduced plans to record two electrical energy distribution firms (Discos) and one era firm (Genco) on the Nigerian Change (NGX).
The initiative is a part of the Bureau’s broader technique to assist President Tinubu’s Renewed Hope Agenda — centered on unlocking worth from public belongings, driving personal funding, and accelerating job creation.
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