The Federal Government has finalised a comprehensive N4 trillion bond programme aimed at settling verified debts owed to power generation companies (GenCos) and gas suppliers across Nigeria.

The announcement was made on Tuesday by the Special Adviser to the President on Energy, Mrs Olu Verheijen, who revealed that the bond initiative is part of President Bola Tinubu’s strategic reforms to resolve structural challenges in the nation’s power sector and restore investor confidence.

Verheijen explained that the bonds, approved by both the Federal Executive Council (FEC) and the President, are designed to tackle long-standing financial bottlenecks that have hindered growth and private investment in the energy sector.

The plan was concluded at a high-level meeting attended by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Power, Chief Bayo Adelabu, where stakeholders agreed on sustainable settlement modalities aligned with Nigeria’s current fiscal realities.

She noted that the initiative represents the largest debt resolution effort in over a decade, with the goal of strengthening the financial viability of utility firms and ensuring a more reliable electricity supply nationwide.

“This is a major step by the federal government towards restoring financial stability and investor confidence within Nigeria’s electricity market,” Verheijen stated.

The initiative also aligns with President Tinubu’s broader energy reform agenda, which includes modernising the electricity grid, expanding distribution networks, and scaling embedded generation to achieve sustainable power sector growth.

This development comes months after GenCos issued a warning in April 2025, threatening to shut down operations over unpaid debts amounting to N4 trillion, which had severely strained the country’s electricity supply chain.