Wednesday, October 15, 2025 - The Federal Government has concluded implementation frameworks for a N4 trillion government-backed bond aimed at settling verified arrears owed to power Generation Companies (GenCos) and gas suppliers.
The Special Adviser to the President on Energy, Mrs. Olu
Verheijen, revealed the development in a statement on Tuesday in Abuja. The
agreement followed a high-level meeting between federal government officials
and senior GenCos executives to review the modalities for clearing the
outstanding debts.
The meeting concluded with a consensus on the next steps,
which include bilateral negotiations to finalise comprehensive settlement
agreements. The government aims to balance fiscal realities with the financial
challenges facing the GenCos.
The approved plan, which received endorsement from the
Federal Executive Council (FEC) in August 2025, authorises the issuance of up
to N4 trillion in government-backed bonds. This intervention, described as the
largest in over a decade, is designed to address a legacy debt overhang that
has severely constrained investment, weakened utility balance sheets, and
hindered reliable power delivery across the country.
As of April 2025, the Federal Government's verified exposure
in debts to GenCos, an accumulation dating back to 2015, stood at N4 trillion.
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