Tinubu: Presidential task force cleared to raise N4trn bond for power sector debt settlement

PRESIDENT Bola Tinubu has disclosed that the Presidential Power Sector Task Force has been granted approval to raise N4 trillion through a bond programme aimed at clearing verified legacy debts in Nigeria’s electricity industry.

Speaking during his Democracy Day address on Friday, Tinubu said the initiative forms part of broader reforms designed to strengthen the power sector and improve electricity supply across the country.

According to the president, the task force has been specifically mandated to tackle liquidity constraints that have long affected the electricity value chain, including outstanding obligations owed to key operators in the industry.

Tinubu recalled that when his administration assumed office in 2023, the sector was plagued by persistent generation deficits, unstable gas supplies and weak transmission infrastructure that struggled to wheel available electricity.

READ ALSO: Tinubu okays N3.3trn debt settlement plan to revive power sector

He added that electricity distribution companies were grappling with huge technical and commercial losses, alongside a metering shortfall exceeding 4 million customers.

“By 2023, when we came on board, the electricity sector was characterised by chronic generation shortfalls, an unreliable gas supply, and transmission infrastructure so fragile that it could not evacuate available power,” the president said.

He noted that the challenges were compounded by heavy legacy debts across the value chain, resulting in a situation where electricity generation remained below installed capacity, transmission lagged behind generation levels, distribution fell short of transmitted power, and revenue collection remained inadequate.

Tinubu said his administration responded by signing the Electricity Act into law, a reform that decentralised the sector and empowered states to participate in electricity generation, transmission and distribution.

He added that the Presidential Power Sector Task Force is also working to address the country’s metering gap.

“The Presidential Power Sector Task Force is working hard to reduce the metering deficit,” Tinubu said. “It has also been authorised to raise N4 trillion bond to settle verified legacy debts.”

The president further highlighted efforts by the Rural Electrification Agency (REA), supported by the World Bank and the African Development Bank, to expand off-grid and mini-grid projects in underserved communities, including schools, healthcare centres and markets.

Describing electricity as essential to economic growth, Tinubu said access to reliable power should be regarded as a benefit of democratic governance.

“Electricity is a democratic dividend we owe every Nigerian. We intend to deliver it,” he said.

He maintained that the ongoing reforms are intended to attract greater investment into the sector, improve reliability and create the foundation for industrial expansion, job creation and enhanced economic competitiveness.

Tinubu’s remarks come months after former Minister of Power, Mr Bayo Adelabu, announced on October 7, 2025, that the president had approved a N4 trillion bond to settle verified debts owed to electricity generation companies (GenCos) and gas suppliers.

READ ALSO: Elumelu meets Tinubu, urges settlement of power sector debts to curb outages

Adelabu had stated that the GenCos were owed about N4 trillion in accumulated obligations. A week after the announcement, the federal government and electricity generation companies agreed on a framework to implement the debt repayment plan.

Debts owed to electricity generation companies (GenCos) surged from N4 trillion in 2024 to N6.6 trillion as of February 2026, according to Adelabu.