By Adelabu Jumoke

President Bola Tinubu has disclosed that the Presidential Power Sector Task Force has been authorised to raise a N4 trillion bond to settle verified legacy debts in Nigeria’s electricity sector, a move aimed at strengthening ongoing reforms and improving power supply nationwide.


Speaking during his Democracy Day address on Friday, the president said the initiative is part of broader efforts to address long-standing financial challenges that have hindered the performance of the country's power value chain.


According to Tinubu, when his administration assumed office in 2023, the electricity sector was grappling with severe generation shortfalls, unreliable gas supply, weak transmission infrastructure, huge distribution losses, and a metering deficit exceeding four million customers.

•President Bola Tinubu

He noted that the sector was further burdened by substantial legacy debts, which undermined the operations of electricity generation and distribution companies.


“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 far less revenue than required to remain sustainable,” the president said.


Tinubu highlighted the signing of the Electricity Act as a major reform milestone, saying it has decentralised the power sector and empowered states to participate in electricity generation, transmission, and distribution.


He added that the Presidential Power Sector Task Force is also working to significantly reduce the country's metering gap.


“As part of these efforts, the task force has been authorised to raise a N4 trillion bond to settle verified legacy debts,” he stated.


The president 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.

Describing electricity as critical to Nigeria’s economic transformation, Tinubu said his administration remains committed to delivering reliable power as a key democratic dividend, while creating an environment that attracts investment, supports industrial growth, generates jobs, and enhances economic competitiveness.


The debt settlement initiative follows the president’s approval in October 2025 of a N4 trillion bond to clear outstanding obligations owed to electricity generation companies (GenCos) and gas suppliers. At the time, former Minister of Power Bayo Adelabu disclosed that GenCos were owed about N4 trillion in accumulated debts.


A week after the approval, the Federal Government and GenCos agreed on the framework for implementing the debt repayment plan.