FG’s ₦4 Trillion Gencos Bond: Will This Finally Stabilise Nigeria’s Electricity Market?

The Federal Government has finalised implementation frameworks for a ₦4 trillion government-backed bond to settle verified arrears owed to power Generation Companies (GenCos) and gas suppliers. 

Officials say the plan is designed to ease the sector’s liquidity crunch, unlock new generation, and restore confidence across the power value chain.

The move follows high-level meetings between finance, power and presidency officials and GenCos to agree on payment modalities.

Clearing arrears should reduce cash-flow strain on generators, encourage gas deliveries, and lower the risk of plant outages. These are key steps if Nigeria hopes to stabilise daily supply and attract new investment.

Execution will hinge on transparent verification, a clear repayment calendar, and coordination with DisCos to improve collections. Consumers will watch for any tariff implications as liquidity improves. 

Still, if the bond programme delivers as planned, the sector could begin moving from firefighting to predictable operations, a prerequisite for industrial growth.