3 weeks ago
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The Federal Government and energy procreation companies (GenCos) person finalised the implementation model for the ₦4trillion Presidential Power Sector Debt Reduction Plan — a landmark inaugural approved by President Bola Tinubu to reconstruct fiscal stability, unlock backstage investment, and guarantee reliable powerfulness proviso crossed Nigeria.
The framework, concluded astatine a gathering held successful Abuja connected October 7, 2025, brings unneurotic the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Minister of Power, Chief Bayo Adelabu, and the Special Adviser to the President connected Energy, Mrs. Olu Verheijen, alongside elder executives of Nigeria’s GenCos.
The high-level gathering reviewed modalities for settling long-standing debts owed to powerfulness procreation companies and state suppliers, reaching a statement connected bilateral negotiations to finalise afloat and last colony agreements that align fiscal realities with the fiscal obligations of the GenCos.
Approved by President Tinubu and endorsed by the Federal Executive Council (FEC) successful August 2025, the ₦4 trillion program authorises the issuance of government-backed bonds to wide verified arrears successful the powerfulness sector.
It marks the azygous largest involution successful much than a decennary aimed astatine resolving liquidity challenges that person weakened inferior equilibrium sheets, discouraged investors, and undermined reliable energy transportation nationwide.
“For the archetypal clip successful years, we are seeing a credible and systematic effort by authorities to tackle the basal liquidity challenges successful the powerfulness sector,” said Mr. Tony Elumelu, president of Heirs Holdings and Transcorp Power. “We commend President Tinubu and his economical squad for this bold and transformative step.”
Echoing the aforesaid sentiment, Group Managing Director of Sahara Group, Mr. Kola Adesina, said: “This inaugural is important successful each respect. It gives america renewed assurance successful the betterment process and a wide awesome that the authorities is superior astir gathering a sustainable powerfulness sector.”
According to officials, the Presidential Debt Reduction Plan goes beyond indebtedness clearance. It represents a strategical reset of Nigeria’s energy marketplace by restoring the fiscal wellness of GenCos and state suppliers, enabling caller investments successful procreation capacity, modernising transmission and organisation networks, and ensuring much reliable powerfulness proviso to homes and industries.
Mrs. Olu Verheijen, the Special Adviser to the President connected Energy, explained that the administration’s absorption was connected gathering the close situation for sustained private-sector-led growth.
“Our absorption is connected creating the close conditions for concern — from modernising the grid and improving organisation to scaling embedded generation,” she said. “By closing metering gaps, aligning tariffs with businesslike costs, improving subsidy targeting for the mediocre and vulnerable, and restoring regulatory trust, we are moving from situation absorption to sustainable delivery.”
Minister of Finance, Mr. Edun, emphasised that the reforms underpinning the program are designed to physique a self-sustaining vigor marketplace that benefits some citizens and investors.
“These reforms spell beyond liquidity,” helium stated. “They are astir rebuilding the fundamentals truthful that Nigeria’s powerfulness assemblage works for investors, for citizens, and for the adjacent generation. This is however we make the enabling conditions for sustained backstage concern and alteration reliable powerfulness into a catalyst for economical growth.”
The inaugural besides complements the government’s broader docket to diversify vigor sources, grow renewable generation, and leverage home state arsenic a modulation fuel. Officials accidental these efforts volition heighten vigor security, trim import dependence, and presumption Nigeria arsenic 1 of Africa’s astir charismatic powerfulness markets.
The Presidential Power Sector Debt Reduction Plan is jointly implemented by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President connected Energy, successful collaboration with the Nigerian Bulk Electricity Trading (NBET) Plc and different key stakeholders.
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