The Federal Government has disclosed that it has paid N333 billion to electricity generation companies (GenCos) under the first phase of its power sector debt settlement programme, as part of efforts to improve liquidity and restore investor confidence in Nigeria’s electricity market.
The government said the payment forms part of a broader N501 billion intervention under Series I of the Power Sector Multi-Instrument Issuance Programme, which was established to address longstanding debts owed to power producers.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this at the NBET Finance Company Plc Series II Bond Issue Investors’ Forum in Abuja.
According to her, the administration deliberately chose to honour its obligations before returning to the capital market for further fundraising, noting that credibility remains central to the government’s power sector reform agenda.
She explained that the N501 billion intervention comprised N300 billion in cash and N201 billion in non-cash bond instruments, covering about 22 per cent of verified obligations under executed settlement agreements.
Verheijen stated that eight participating generation companies operating 17 power plants had received a total of N333 billion under the programme. She also confirmed that the first Series I bond coupon, valued at about N63.5 billion, was paid in full on July 14, 2026.
She said the settlement programme was helping to transform legacy liabilities into fresh liquidity capable of supporting investments across the electricity value chain.
“Markets do not reward promises; they reward performance. We deliberately chose execution before expansion,” she said.
The Acting Managing Director and Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), Johnson Akinnawo, said the success of the first issuance demonstrated that power sector debt instruments could attract investor confidence when structured transparently.
Akinnawo noted that improved liquidity was already being felt across the electricity value chain and disclosed that the government was seeking to raise approximately N729 billion under Series II of the programme.
The Power Sector Multi-Instrument Issuance Programme was established under the Presidential Power Sector Financial Reforms Programme to address the huge debts owed to electricity generation companies, which have constrained investment and operations within the sector.
Industry stakeholders believe the continued settlement of legacy debts will improve the financial health of the electricity market, enhance power generation, and strengthen investor confidence in the sector.
