The Federal Authorities has concluded implementation frameworks for a N4 trillion government-backed bond geared toward settling verified arrears owed to energy Technology Corporations (GenCos) and fuel suppliers.
This was revealed by the Particular Adviser to the President on Vitality, 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 overview 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 stability fiscal realities with the monetary challenges dealing with the GenCos.
The assertion famous, “Authorised 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 technology corporations and fuel suppliers. This intervention, the biggest in over a decade, addresses a legacy debt overhang that has constrained funding, weakened utility stability 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 offers 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, enhancing subsidy focusing on to assist the poor and weak, and restoring regulatory belief.
“The sector is shifting from disaster response to sustained supply and constructing the arrogance wanted to draw large-scale non-public capital,” she stated.
Backstory
In July, President Bola Tinubu authorized a N4 trillion bond initiative geared toward addressing the liquidity shortfall in Nigeria’s energy sector.
This follows a gathering between President Tinubu and representatives of energy technology corporations (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 difficulty 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 it’s best to know
In September, the Bureau of Public Enterprises (BPE) introduced plans to record two electrical energy distribution corporations (Discos) and one technology 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 — targeted on unlocking worth from public belongings, driving non-public funding, and accelerating job creation.
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