The Federal Government has approved the issuance of a ₦4 billion bond to offset accumulated debts owed to power generation companies (Gencos) and gas suppliers, in a move designed to improve liquidity and stability within Nigeria’s electricity supply chain.
According to government sources, the bond approval is part of broader efforts to restore confidence among energy investors and ensure continuous gas supply to thermal power plants across the country.
The debt settlement, long requested by Gencos and gas producers, is expected to enhance power generation capacity and reduce recurring supply disruptions caused by financial shortfalls in the sector.
The Ministry of Power noted that the new bond will also help boost private sector participation in energy projects and support the Federal Government’s goal of achieving reliable and affordable electricity for all Nigerians.
Stakeholders in the industry have welcomed the decision, describing it as a positive step toward resolving liquidity challenges that have hindered progress in Nigeria’s power sector for years.