The Minister of Power, Chief Adebayo Adelabu, has expressed confidence that the Federal Government’s N501.02billion bond issuance would unlock growth across the electricity value chain.
The bond, executed through Nigerian Bulk Electricity Trading Plc as part of a broader N4tn Presidential Power Sector Debt Reduction Programme approved by President Bola Ahmed Tinubu, represents a strategic shift from ad hoc interventions to structured, market-driven solutions.
Designed to clear a significant portion of the over N6tn debt burden crippling the sector, the initiative underscores a reform-focused approach aimed at addressing long-standing structural inefficiencies.
Adelabu, in a statement on Monday by his Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, noted that the intervention was not just about settling debts, but about resetting the foundation of the power sector.
“By restoring liquidity, enhancing bankability, and creating a more predictable investment climate, the government is laying the groundwork for sustainable growth and improved electricity supply,” he said.
The bond proceeds are expected to reverse this trend by settling legacy debts, restoring gas supply, and enabling improved plant maintenance—key factors in boosting electricity generation.
Beyond immediate liquidity support, the intervention signals renewed investor confidence in the sector. Backed by a sovereign guarantee and aligned with global financing standards, the bond is positioned to attract private capital, enhance bankability, and stimulate further investments in generation and infrastructure.
Complementary reforms, accordign to the statement, including targeted subsidies for vulnerable consumers and ongoing tariff adjustments, reflect a broader policy framework aimed at achieving full commercialisation.
Tunji added that the initiative, alongside targeted subsidies and tariff reforms, reflects a deliberate policy shift towards full commercialisation and long-term viability of the sector.
Industry stakeholders have described the programme as a “reset” of the electricity market, restoring trust and financial discipline while laying the groundwork for sustainable growth.
Early settlement agreements with generation companies and improved transmission capacity further reinforce the administration’s commitment to holistic sector reform.
The Special Adviser noted that while challenges such as transmission constraints and revenue adequacy persist, the bond initiative marks a critical turning point. It highlights a coordinated effort to move the sector away from systemic inefficiencies towards a more viable, investor-friendly model.
“As reforms continue to unfold, the N501bn bond stands out as a cornerstone achievement—one that not only addresses immediate financial pressures but also cements Adelabu’s legacy as a reform-driven minister steering Nigeria’s power sector towards stability, growth, and the long-envisioned goal of reliable electricity supply,” according to Tunji.
