The Federal Government has announced the settlement of ₦333 billion in legacy debts owed to electricity generation companies (GenCos) under the first phase of its Power Sector Multi-Instrument Issuance Programme, marking a major milestone in efforts to restore financial stability to Nigeria’s electricity sector.
Speaking at the Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Series II Bond Investors’ Forum in Abuja, the Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, said the government had fulfilled all obligations under the programme’s first tranche, including the payment of the first bond coupon.
According to her, the Federal Government deployed approximately ₦501 billion in February 2026, comprising ₦300 billion in cash and ₦201 billion in non-cash bond instruments, to settle about 22 per cent of verified legacy debts under executed settlement agreements.
She disclosed that ₦333 billion has so far been paid to eight participating generation companies, covering 17 power plants, while the ₦63.5 billion first bond coupon was paid in full on July 14, 2026.
Verheijen said the successful execution of Series I has strengthened investor confidence in Nigeria’s power sector and paved the way for the proposed ₦729 billion Series II bond, which is expected to improve liquidity across the electricity value chain and attract greater private sector investment.
She stressed that the Tinubu administration remains committed to honouring its financial obligations, noting that consistent execution and policy credibility are key to attracting long-term investment and driving sustainable reforms in the power sector.
The Presidential Power Sector Financial Reforms Programme is designed to address legacy debts, improve cash flow within the electricity market, enhance operational efficiency, and support the Federal Government’s broader economic reform agenda.
