Tinubu says N4tn bond will revive Nigeria’s struggling power sector

President Bola Tinubu has outlined steps taken by his administration to reform Nigeria’s electricity sector, revealing that the Presidential Power Sector Task Force has been authorised to raise a N4 trillion bond to settle verified legacy debts in the industry.

Speaking in his Democracy Day address on Friday, Tinubu said the power sector he inherited in 2023 was plagued by chronic generation shortfalls, unreliable gas supply, weak transmission infrastructure and huge financial liabilities.

According to him, distribution companies were burdened by massive losses, while the country faced a metering deficit of more than four million customers.

“Worst of all, the value chain was drowning in legacy debt,” the President said, noting that the sector generated less than its installed capacity, transmitted less power than it generated and distributed less than it transmitted.

Tinubu said his administration had introduced key reforms to address the challenges, including the signing of the Electricity Act, which grants states the authority to generate, transmit and distribute electricity.

He added that the Presidential Power Sector Task Force was working to reduce the metering deficit and had been empowered to raise a N4 trillion bond to clear verified debts across the electricity value chain.

The President also highlighted the role of the Rural Electrification Agency in expanding access to power through off-grid and mini-grid projects in underserved communities, universities, markets and hospitals.

According to him, the agency’s efforts are being supported by the World Bank and the African Development Bank.

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