Oil & Energy
Tinubu Backs N4trn Bond To Resolve Power Sector Liabilities
President Bola Ahmed Tinubu has given anticipatory approval for a N4 trillion bond initiative aimed at addressing the liquidity shortfall in Nigeria’s power sector.
Tinubu gave the approval during the meeting with representatives of the Association of Power Generation Companies (GenCos), led by former Niger State Governor, Col. Sani Bello (rtd), at the Presidential Villa, Abuja, weekend.
Special Adviser to the President on Energy, Ms. Olu Verheijen, who disclosed this to newsmen, said President Tinubu reaffirmed his administration’s commitment to resolving the financial challenges bedeviling the sector.
According to her, Tinubu acknowledged the historical liabilities inherited from previous administrations and assured the GenCos that his government would approach the issue with transparency and fairness.
Tinubu said, “I accept the assets and liabilities of my predecessors, and there is no question about that. But that acceptance must be on credible grounds.
“I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion.”
The President emphasised the need for patience from GENCOs and financial institutions, noting that government agencies are actively engaging audit and legal firms to scrutinise the claims.
“We are here. So, market it to your other colleagues. Give us time to do verification and validation of the numbers”, he said.
While reaffirming his belief in a market-driven electricity sector, the President said the industry’s long-neglected legacy issues are now receiving the attention they deserve.
“This is a longstanding issue that is now being dealt with. I know how much we have been able to save on fuel subsidies. We introduced the alternative, CNG, to bring relief back to the people”, the President stated.
Describing electricity as “the most important discovery of humanity in the last 1,000 years”, the President reaffirmed that access to electricity is fundamental to economic growth and human dignity.
The Special Adviser to the President, Ms. Verheijen, attributed the liquidity crisis to “a combination of unfunded tariff shortfalls and market shortfalls” that has built up over a decade.
She stated that as of April 2025, the Federal Government was carrying a verified exposure of N4 trillion in debts to GENCOs, an accumulation dating back to 2015.
“We have since sat with 27 GENCOs—not all of them are here today—and reviewed their PPAs and gas sales agreements to understand the legitimacy of their claims. The GENCOs claimed about N4 trillion from 2015 to the end of 2023″, she said.
According to her, the Nigerian Bulk Electricity Trading Company (NBET), the agency that contractually mediates between GENCOs and the government, has validated N1.8 trillion of these claims so far.
“Since that period, we have had N200 billion in unfunded subsidies that have accumulated the federal government’s liability.
“So, as of April 2025, the total exposure that we are carrying at the moment is N4 trillion”, she added.
Verheijen, however, cautioned that the figure remains subject to downward revision, pending final validation.
“While there is an anticipatory approval of this N4 trillion bond programme, it is subject to negotiations and final settlement of agreements. Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO”, she explained.