By Adedapo Adesanya

The Nigerian government may issue bonds and other instruments for the payment of N4 trillion owed players inn the electricity sector to help stabilise the nation’s ailing power industry and improve supply.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Wednesday confirmed the presentation of a proposal to the Federal Executive Council (FEC) for the clearance of the N4 trillion debt owed to power generation companies (GenCos).

Mr Edun told State House reporters after the FEC meeting that he presented a memo on refinancing outstanding obligations in the electricity industry.

“I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion,” he said, adding that, “Though the financing plan was not fully approved immediately, we have moved into implementation, led by the Debt Management Office and other experts.”

The debt, primarily owed to 27 power generation companies for outstanding invoices between 2015 and 2023, has stifled investment in the industry and exacerbated chronic power outages in Africa’s most populous nation.

He said the refinancing would be executed within three to four weeks under the oversight of the debt management office.

“It is now fully approved, and we move to implementation,” Mr Edun said.

In April, the GenCos warned that the unpaid N4 trillion debt owed by the federal government and stakeholders for electricity generated threatens their operations. A breakdown of the debt includes N2 trillion for 2024 and N1.9 trillion in legacy debts.

Back then, the Minister of Power, Mr Adebayo Adelabu said the federal government may borrow to settle GenCos, adding that the federal government plans to pay them N2 trillion of the N4 trillion debts owed to them between now and the end of 2025.

He said he was already discussing with the Minister of Finance, to settle the debt with budgetary allocation or guaranteed debt instruments as promissory notes.

He explained that the promissory notes would be formidable enough for them to tender at the banks for immediate cash needs.

The Minister said, “And I can tell you that between now and the end of the year, we are going to pay close to N2 trillion out of this N4 trillion.

“I have had discussions with the Minister of Finance and the Coordinating Minister of the Economy, who has promised that they working on the promissory note and once we have budget releases, cash payments will also be made.”

By Adedapo Adesanya

President Bola Tinubu has ordered the review of deductions and revenue retention by the Nigerian National Petroleum Company (NNPC) Limited and other major revenue-generating agencies in the country.

The move is to boost public savings, improve spending efficiency, and unlock resources for growth, according to resolutions reached at Wednesday’s Federal Executive Council (FEC) meeting in Abuja.

The directive applied to NNPC, the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).

Mr Tinubu specifically called for a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).

He tasked the Economic Management Team, led by the Minister of Finance, Mr Wale Edun, to present actionable recommendations to FEC on the best way forward.

President Tinubu said the directive was part of efforts to sustain reforms that had dismantled economic distortions, restored policy credibility, enhanced resilience, and bolstered investors’ confidence.

The reforms have created a transparent and competitive business environment attractive to local and foreign investors in critical sectors, such as infrastructure, oil and gas, health, and manufacturing.

Also, President Tinubu noted that Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027, describing the target as “not just economic, but a moral imperative” as higher growth was the surest way to tackle poverty.

He cited the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.

The President also said Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027.

Mr Tinubu, according to a statement from the Ministry of Finance, described it as “not just economic, but a moral imperative”, as higher growth is the surest path to tackling poverty.

By Modupe Gbadeyanka

President Bola Tinubu will today, Thursday, August 14, 2005, leave Nigeria for a two-nation trip to Japan and Brazil, though he is expected to have a stop-over in Dubai in the United Arab Emirates (UAE) before proceeding to Japan.

A statement issued on Wednesday by his Special Adviser on Information and Strategy, Mr Bayo Onanuga, disclosed that the President would be spending about two weeks outside the country.

According to the statement, in Japan, President Tinubu will attend the Ninth Tokyo International Conference on African Development (TICAD9) in the City of Yokohama from August 20 to 22.

With the theme Co-create Innovative Solutions with Africa, TICAD9 will focus on Africa’s economic transformation and improvements in the business environment and institutions through private investment and innovation. It will also promote a resilient and sustainable African society for human security, peace, and stability.

In addition to attending plenary sessions on themes linked to the conference, the Nigerian President will hold bilateral meetings and meet the chief executive officers of some Japanese companies with investments in Nigeria.

Initiated in 1993 by the Japanese government and co-hosted by the United Nations, UNDP, the African Union Commission, and the World Bank, TICAD is a triennial conference held alternately in Japan and Africa. The last one took place in August 2022 in Tunisia.

 The forum fosters high-level policy dialogue between African leaders and development partners.

At the end of the TICAD9, Mr Tinubu will leave for Brasilia in Brazil for a two-day state visit from Sunday, August 24, to Monday, August 25, following an invitation by the Brazilian President, Luiz Inacio Lula da Silva.

While in Brazil, he will hold a bilateral meeting with his host and attend a business forum with Brazilian investors.

His delegation—comprising key ministers and senior officials—will explore opportunities to strengthen cooperation and sign agreements and Memoranda of Understanding (MoUs) with the Brazilian government.