Tinubu Directs Presidential Task Force to Raise #4tn Bond to Clear Power Sector Debts
President Bola Tinubu has authorised the Presidential Power Sector Task Force to raise a N4 trillion bond to settle verified legacy debts in Nigeria’s electricity sector as part of ongoing reforms aimed at stabilising power supply and improving industry performance.
Tinubu disclosed this on Friday during his Democracy Day address, saying the initiative is designed to address long-standing liquidity challenges that have hampered growth across the electricity value chain.
According to the President, the task force has been mandated to tackle the backlog of unpaid obligations owed to electricity generation companies (GenCos), gas suppliers, and other stakeholders in the sector.
“By 2023, when we came on board, the electricity sector was characterised by chronic generation shortfalls, unreliable gas supply, and transmission infrastructure so fragile that it could not evacuate available power,” Tinubu said.
He noted that distribution companies were grappling with significant operational losses and a metering deficit exceeding four million customers, while mounting debts further weakened the sector’s sustainability.
“Worst of all, the value chain was drowning in legacy debt. The result was a sector that generated less than its installed capacity of 13,500 megawatts, transmitted less than it generated, distributed less than it transmitted, and collected revenue far below what it required to sustain operations,” he added.
Tinubu highlighted key reforms undertaken by his administration, including the signing of the Electricity Act, which decentralised the power sector and empowered states to participate in electricity generation, transmission, and distribution.
He said the Presidential Power Sector Task Force was also working to bridge the country’s metering gap and improve operational efficiency across the industry.
“The Presidential Power Sector Task Force is working hard to reduce the metering deficit. It has also been authorised to raise a N4 trillion bond to settle verified legacy debts,” the President stated.
Tinubu further revealed that the Rural Electrification Agency, with support from the World Bank and the African Development Bank, is expanding off-grid and mini-grid electricity projects to underserved communities, schools, markets, and healthcare facilities across the country.
Describing electricity as a fundamental driver of economic growth and national development, the President said access to reliable power remains a key priority of his administration.
“Electricity is a democratic dividend we owe every Nigerian. We intend to deliver it,” he said.
The President expressed confidence that ongoing reforms would attract greater investment into the sector, improve electricity reliability, and support industrialisation, job creation, and economic competitiveness.
The bond initiative is a continuation of efforts announced by the Federal Government in October 2025 when the then Minister of Power, Adebayo Adelabu, disclosed that President Tinubu had approved a N4 trillion bond programme to offset verified debts owed to electricity generation companies and gas suppliers.
Adelabu had stated that GenCos were owed approximately N4 trillion in accumulated obligations, a development widely blamed for persistent liquidity challenges within the sector.
A week after the announcement, the Federal Government and electricity generation companies agreed on an implementation framework for the debt settlement plan, paving the way for the proposed bond programme.
Industry stakeholders believe the settlement of legacy debts could significantly improve liquidity, boost investor confidence, and enhance the overall stability of Nigeria’s power sector.