The Federal Government has commenced fresh efforts to address the mounting debt owed to electricity generation companies (Gencos) through a proposed ₦729 billion power bond.
Minister of Power, Adebayo Adelabu, disclosed this on Monday during a stakeholders’ meeting in Abuja, where he revealed plans to engage investors on the bond initiative.
According to Adelabu, the proposed bond forms part of broader reforms aimed at stabilising the power sector and improving liquidity across the electricity value chain.
He explained that the intervention would help settle outstanding obligations owed to generation companies for electricity supplied to the national grid, thereby strengthening confidence among industry stakeholders.
The minister assured prospective investors of the government’s commitment to meeting its obligations and sustaining reforms designed to encourage private sector participation in the power industry.
He noted that details regarding the structure of the bond, repayment arrangements and incentives for investors would be discussed during engagements with relevant stakeholders.
Industry experts have identified unpaid debts to Gencos as one of the major challenges affecting electricity generation and investment in Nigeria’s power sector.
The planned bond is expected to provide relief to generation companies while supporting efforts to improve electricity supply and overall sector performance nationwide.
