Sahara Power Group has disclosed that it has so far paid the naira equivalent of $438 million in loan repayments, representing about 73 per cent of its original $600 million loan, despite long-standing liquidity challenges in Nigeria’s power sector. The disclosure was made by the Group Managing Director of Sahara Power Group, Mr Kola Adesina, who said the company remains committed to meeting all its financial obligations while positioning itself for future expansion.
Adesina spoke on the state of power sector loans and investment prospects, noting that discussions with the consortium of banks that financed the power assets are ongoing and progressing positively. According to him, the loans are contractually due for full repayment by 2034, and Sahara Power has continued to service them diligently in line with agreed terms. He explained that maintaining financial discipline is critical to sustaining investor confidence and unlocking further funding to grow operations.
He said Sahara Power’s track record of repayments reflects the group’s commitment to transparency and financial integrity, even in a difficult operating environment. “From inception to date, we have paid the naira equivalent of $438 million, which is 73 per cent of the original loan of $600 million,” Adesina said. He added that this achievement was recorded despite severe liquidity constraints in the electricity industry, including outstanding debts owed to power generation companies and gas suppliers.
According to Sahara Power, debts owed to the company and its gas suppliers were reconciled to about N1.514 trillion as of March 31, 2025, highlighting the scale of financial pressure across the sector. Adesina expressed appreciation to the Federal Government for stepping in through legacy debt payments, describing the intervention as a major relief that will help clear outstanding obligations to banks, gas suppliers, and technical service providers responsible for operations and maintenance.
He said the ongoing settlement of legacy debts is expected to stabilise the power sector and create room for fresh investments. “We are confident that the loans will be sorted out completely as we are eager to accelerate our growth plans,” he stated. He also noted that Sahara Power has carried out extensive scenario planning and aligned its long-term strategy with the infrastructure development agenda of President Bola Ahmed Tinubu.
Adesina praised President Tinubu for what he described as bold and clear-sighted reforms aimed at tackling long-standing challenges in the power sector and the wider economy. He said the administration’s willingness to address structural bottlenecks has helped restore investor confidence and created a more predictable business environment. According to him, improvements in foreign exchange stability, moderation in inflation, and easing interest rates are helping investors plan better and make long-term commitments.
He stressed that Nigeria’s power sector remains central to economic growth, industrialisation and job creation, adding that renewed reforms are expected to attract more capital, technology and partnerships. Adesina said opportunities abound in generation, transmission, distribution and energy solutions, especially as demand for reliable electricity continues to rise across the country.
Speaking on the theme “State of the Power Sector and Opportunities Ahead,” Adesina said Nigeria has the potential to emerge as a transformational power hub in Africa if current reforms are sustained. He pointed to growing collaboration among stakeholders, including the Federal Government, the Ministry of Power, regulatory agencies, electricity market operators, the Central Bank of Nigeria, commercial banks, multilateral development institutions and private investors.
According to him, this level of cooperation is unprecedented and signals a new phase for the electricity industry. “We are witnessing unprecedented collaboration involving government, regulators, power companies, financial institutions and development partners,” he said. Adesina expressed optimism that the trend will continue into 2026, driving efficiency, sustainability and improved power supply for homes and businesses.
While commending the Federal Government for addressing liquidity challenges through the payment of legacy debts, Adesina said the move would unlock stalled investments and help stabilise the sector for long-term growth. He noted that resolving historical debts is critical to restoring confidence among lenders and suppliers, particularly gas producers who play a key role in power generation.
Adesina concluded that with consistent policies, improved market discipline and sustained collaboration, Nigeria’s power sector can overcome its long-standing challenges. He said Sahara Power remains committed to supporting sector reforms, expanding capacity and delivering reliable electricity that will support economic development and improve the quality of life for Nigerians.
