FG approves N4trn bond to clear Genco, gas supply debts
By Sebastine Obasi
The lingering insufficient power supply problem may soon be over, if the the federal government’s Initiative is anything to go by.
Speaking at the Nigeria Energy Summit, taking place in Lagos, Adebayo Adelabu, Minister of Power, stated that President Bola Tinubu has approved N4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialization and viable industry.
As regards sector commercialization the Minister said that the government is deepening power sector commercialization to strengthen revenue, liquidity and investor confidence. “Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, and industry revenue has increased by 70 per cent to ₦1.7 Trillion in 2024 compared to previous year and the revenue is expected to exceed ₦2 Trillion for 2025,” he said.
“On sector performance monitoring and enforcement, the National Regulator and the State Regulatory Commissions are working in close synergy to drive performance improvement across the utilities.
“The sector continues to face challenges of under-capitalization among several Distribution Companies (DisCos) and a severe debt burden that has constrained their operational efficiency and service delivery over the years.
“As the tenure of their operational licenses approaches renewal, the government intends to introduce a minimum capital adequacy requirement as part of the license renewal process, to strengthen the financial health and liquidity position of the utilities,” he stated.
In the area of infrastructure development, the Minister explained that the Federal Government has introduced targeted national programmes aimed at accelerating the viability, expansion, and modernization of the national grid.
According to him, “Under the phase zero of the Presidential Power Initiative (PPI), we enhanced transmission capacity, grid stability, and overall system reliability, with over 700MW of additional transmission capacity already achieved.
The post FG approves N4trn bond to clear Genco, gas supply debts appeared first on Vanguard News.
