The announcement, made during the Expert Forum on ‘Uninterrupted Power: The Industrial Imperative’ organized by the Nigeria Economic Summit Group in Abuja, comes amid ongoing efforts to address liquidity crises that have hamstrung electricity production and investor trust for over a decade. 

Adelabu described the bond as a “game-changer” under the Tinubu administration’s Renewed Hope Agenda, targeting verified liabilities accumulated since 2015, including unpaid invoices for electricity generated and gas supplies.

“To stabilise the market, Mr. President has approved a N4tn bond to clear verified GenCo and gas supply debts,” Adelabu stated, emphasizing that the initiative would alleviate financial pressures on operators whose operations have been crippled by the backlog. 

He highlighted recent sector gains, noting a 70% revenue surge to N1.7 trillion in 2024 from N1 trillion the previous year, with projections exceeding N2 trillion in 2025. 

This uptick has already slashed government subsidy burdens by over N700 billion, Adelabu added.

The debts, totaling N4 trillion as verified by the Nigerian Bulk Electricity Trading Company (NBET), stem from unfunded tariffs, market shortfalls, and legacy obligations inherited from prior administrations. 

Out of initial claims from 27 GenCos, NBET has validated N1.8 trillion, with the remainder subject to further audits before the Debt Management Office (DMO) finalizes the bond issuance. 

Presidential Special Adviser on Energy, Olu Verheijen, had earlier in July described the approval as “anticipatory,” indicating that only legitimate amounts would proceed to negotiation and settlement.

Industry leaders welcomed the development. Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power, who has repeatedly flagged the debt’s threat to GenCos’ bank loans and potential foreclosures, praised the move as a step toward “restoring integrity” in oil production and energy stability.