ABUJA, Nigeria (FN) — The Nigerian government has unveiled a massive four Trillion Naira bond scheme to settle long-standing debts owed to power generation companies and gas suppliers—raising new questions about whether this is real reform or another bailout for an elite sector that has failed the Nigerian people.
Announced by the Special Adviser to the President on Energy, Olu Verheijen, the intervention is being framed as the biggest financial rescue in over a decade for a sector marred by corruption, inefficiency, and chronic underperformance. But critics argue it may simply repeat the cycle of throwing public money at private energy players with little to show in return.
The deal was finalized at a closed-door meeting between top government officials and the executives of generation companies. Present at the talks were Minister of Finance Wale Edun, Minister of Power Bayo Adelabu, and Verheijen—all of whom insisted the debt resolution would mark a “turning point” for electricity delivery in Nigeria.
“This is not just a cash injection. We’re restructuring the entire foundation of the sector,” said Verheijen. But for many Nigerians who still rely on generators, candles, and hope, the promises sound painfully familiar.
According to the government, the plan involves bilateral agreements between the state and power companies to ensure what it calls “full and final” settlements. Yet no clear timeline was given, and transparency mechanisms remain vague—leaving watchdog groups worried that history may repeat itself.
Senan Murray, Head of Communications in the Energy Adviser’s Office, called the four trillion Naira package a “bold reset” aimed at unblocking private investment and restoring balance to the energy market. However, industry insiders say similar promises were made during previous interventions, including the power sector privatization in 2013—which critics now call a national embarrassment.
“This sector has swallowed trillions before. What’s different this time?” said one independent energy analyst. “Until the public sees power 24/7, it’s all talk.”
Finance Minister Wale Edun maintained that the effort is not just about liquidity but about “rebuilding the fundamentals” of the power system. Still, with no independent audit yet released and ongoing blackouts across major cities, many view the bailout as more political theater than transformational policy.
Verheijen claimed the government is also addressing wider issues—like closing the metering gap, improving grid infrastructure, and aligning tariffs. But these reforms have been on paper for years. The only thing consistent, critics say, is the flow of public money into private hands, with no matching improvement in electricity supply.
Business moguls welcomed the move. Heirs Holdings Chairman Tony Elumelu called it a credible step, while Sahara Power boss Kola Adesina said it signaled a strategic reset. Yet neither offered guarantees on how the money would improve performance—or what consequences would follow if it didn’t.
The Presidential Power Sector Debt Reduction Plan is being coordinated by the Ministries of Finance and Power, the Office of the Special Adviser on Energy, and the Nigerian Bulk Electricity Trading Plc. But past attempts at similar coordination have failed, largely due to poor enforcement and weak regulatory will.
President Bola Tinubu previously promised the GenCos that their debts would be settled after a thorough audit, but to date, no such audit has been made public.
As millions of Nigerians continue to live without reliable power and face rising energy costs, the government’s new four trillion Naira gamble may either be the bold breakthrough it claims—or yet another costly mistake in a sector that has burned too much money, and too little light.
