Tinubu Approves N4 Trillion Bond to Stabilise Nigeria’s Power Sector

President Bola Ahmed Tinubu has approved a ₦4 trillion bond aimed at stabilising Nigeria’s struggling power sector, marking a significant step toward resolving long-standing financial and operational challenges in electricity supply. The bond is designed to address legacy debts owed to power generation companies (GenCos), gas suppliers, and other key players across the electricity value chain.

For years, liquidity shortfalls and unpaid obligations have weakened the sector, limiting investment, reducing generation capacity, and contributing to frequent power outages. By clearing verified arrears, the new bond is expected to restore confidence among investors and operators, improve cash flow, and support more reliable power generation and distribution nationwide.

Government officials say the intervention aligns with broader power sector reforms focused on sustainability, efficiency, and private-sector participation. Improved electricity supply is also seen as critical to economic growth, as businesses and households continue to rely heavily on costly alternative power sources.

While stakeholders have welcomed the move, many emphasize that financial intervention must be paired with strong governance, tariff reforms, and infrastructure upgrades to achieve lasting results. If effectively implemented, the ₦4 trillion bond could mark a turning point in Nigeria’s quest for stable and affordable electricity.