The Nigerian Bulk Electricity Trading Plc (NBET) has commenced payments to participating electricity generation companies (GenCos) and their associated gas suppliers following the issuance of ₦728.979 billion in Series 2 bonds under the Federal Government’s Power Sector Debt Reduction Programme.
The settlement follows the successful issuance and signing of the bonds under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme, aimed at addressing outstanding obligations in Nigeria’s electricity industry.
NBET disclosed this in a statement by its Managing Director and Chief Executive Officer, Akin Odeyemi, who said the payments were being made in line with the approved settlement framework.
According to the statement, the settlement comprises ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds.
The development marks a major step in the implementation of the Presidential Power Sector Debt Reduction Programme under President Bola Tinubu’s administration and its Renewed Hope Agenda.
NBET said the initiative was designed to address historical financial obligations, improve liquidity across the electricity value chain and strengthen the financial position of key industry players.
The company noted that settling the outstanding debts would help the electricity market move towards a more sustainable cash-flow system, with improved payment discipline, stronger liquidity and greater commercial certainty for investors.
It added that a more financially stable power generation segment would enhance the capacity of GenCos to maintain and improve their generating assets, support increased electricity production and contribute to improved reliability across the Nigerian electricity market.
The company described the milestone as evidence of the Federal Government’s commitment to resolving longstanding financial obligations while establishing a commercially viable and investment-driven electricity sector.
NBET further disclosed that it was undertaking preparatory activities for the commencement of the second phase of the programme.
The initiative forms part of the broader ₦4 trillion Power Sector Multi-Instrument Issuance Programme, which seeks to address legacy debts and improve the financial sustainability of Nigeria’s electricity market.
The commencement of the settlements is expected to ease some of the financial pressures on participating power generators and their associated gas suppliers, while supporting efforts to strengthen the electricity supply chain.
