The Minister of Power, Adebayo Adelabu, has said that the recently floated N501.02 billion bond issuance was a major step towards ending the prolonged liquidity in the power sector and repositioning the electricity market for long-term sustainability.
Special Adviser on Strategic Communications and Media Relations to the minister, Bolaji Tunji, in a statement in Abuja on Monday, recalled that the bond executed through the Nigerian Bulk Electricity Trading Plc (NBET) was part of a broader N4 trillion Presidential Power Sector Debt Reduction Programmeapproved by President Bola Tinubu.
Adelabu stated that the move represents a strategic shift from ad hoc interventions to structured, market-driven solutions. Designed to clear a significant portion of the over N6 trillion cumulative debt burden crippling the sector, the initiative, he said, underscores a reform-focused approach aimed at addressing long-standing structural inefficiencies.
“At the heart of the reform is the drive to stabilise the Nigerian Electricity Supply Industry (NESI) by improving cash flow across the value chain. Chronic revenue shortfalls, largely due to non-cost-reflective tariffs and underfunded subsidies, had left generation companies unable to meet obligations to gas suppliers and maintain critical infrastructure.
“The bond proceeds are expected to reverse this trend by settling legacy debts, restoring gas supply, and enabling improved plant maintenance—key factors in boosting electricity generation.
“Beyond immediate liquidity support, the intervention signals renewed investor confidence in the sector. Backed by a sovereign guarantee and aligned with global financing standards, the bond is positioned to attract private capital, enhance bankability, and stimulate further investments in generation and infrastructure.
“Complementary reforms, including targeted subsidies for vulnerable consumers and ongoing tariff adjustments, reflect a broader policy framework aimed at achieving full commercialisation,” Adelabu stated.
Providing insight into the reform, Adelabu explained that the bond issuance is central to restoring confidence and unlocking growth across the electricity value chain.
He added:, “This intervention is not just about settling debts; it is about resetting the foundation of the power sector. By restoring liquidity, enhancing bankability, and creating a more predictable investment climate, the government is laying the groundwork for sustainable growth and improved electricity supply.”
He stressed that the initiative, alongside targeted subsidies and tariff reforms, reflects a deliberate policy shift towards full commercialisation and long-term viability of the sector.
According to the minister, while challenges such as transmission constraints and revenue adequacy persist, the bond initiative marks a critical turning point and highlights a coordinated effort to move the sector away from systemic inefficiencies towards a more viable, investor-friendly model.
Meanwhile, stakeholders from government, the organised private sector, development agencies, and civil society have called for stronger collaboration and expanded financing to accelerate the adoption of energy-efficient and cleaner production practices in Nigeria’s industrial sector.
The call was made on Monday during a special project-specific interactive session and ‘Efficiency Champions Competition’ organised under the Global Environment Facility and United Nations Industrial Development OrganisationIndustrial Energy Efficiency and Resource Efficient and Cleaner Production project in Abuja.
The event brought together representatives of industries, non-governmental organisations, financial institutions, policy makers, and members of the media to review the progress of the initiative and explore opportunities for expanding sustainable industrial practices across the country.
Speakers at the session emphasised that improving energy efficiency and reducing waste in industrial operations are essential for lowering production costs, boosting competitiveness and promoting environmentally responsible manufacturing.
Opening the session, the project leadership said the initiative had recorded significant progress in promoting industrial energy efficiency and resource-efficient production methods within Nigeria’s manufacturing sector.
According to the National Project Coordinator, GEF-UNIDO IEE and RECP Project, Jacob Oladipo, the project has supported capacity building programmes, cleaner production assessments, policy engagement and innovative financing mechanisms designed to help industries reduce energy consumption while improving productivity.
He explained that the project had demonstrated that sustainable industrial practices are not only environmentally responsible but also economically beneficial to businesses.
The session also provided an opportunity for stakeholders to review the outcomes of the project and identify lessons that could support the wider adoption of energy-efficient technologies and cleaner production systems across industries.
In a goodwill message delivered on behalf of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Mr. Kunle Fadaresaid the initiative was both timely and strategic for Nigeria’s industrial growth.
He noted that the industrial sector accounts for more than 30 per cent of the country’s total energy consumption but still operates far below optimal efficiency levels.
Fadare said studies have shown that improvements in energy efficiency within Nigerian industries could lead to savings of between twenty and forty per cent in energy use.
He added that such gains would translate into reduced production costs, improved competitiveness and lower greenhouse gas emissions.
Also speaking, the Global Environment Facility desk officer commended the collaboration among stakeholders involved in implementing the project.
The official expressed appreciation to the United Nations Industrial Development Organization for providing technical guidance and to the Manufacturers Association of Nigeria for supporting the implementation of the initiative.
The desk officer also acknowledged the role played by various government ministries, departments and agencies, as well as the Department of Pollution Control and Environmental Health, in advancing the project’s objectives.
According to the official, the interactive session was designed to allow stakeholders to examine emerging issues related to energy use in industries, share experiences, address challenges and identify opportunities for improvement.
Emmanuel Addeh and Michael Olugbode
