The Federal Government has announced that it has fulfilled all commitments under the first phase of its power sector debt financing programme, disclosing that about N501bn was deployed to settle part of the long-standing debts owed to electricity generation companies (GenCos). The government also confirmed the successful payment of the first bond coupon, saying the move has strengthened investor confidence in Nigeria’s electricity market.
Speaking at the Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Series II Bond Issue Investors’ Forum in Abuja, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, said N333bn has already been paid to eight participating GenCos operating 17 power plants under the first phase of the settlement programme. She explained that the government injected N300bn in cash and N201bn through non-cash bond instruments, covering about 22 per cent of verified settlement obligations, while the remaining balance will be addressed through the proposed N729bn Series II bond and future issuances.
Verheijen said the Tinubu administration deliberately honoured all obligations before returning to the capital market, stressing that credibility and disciplined execution remain central to the government’s reform agenda. She revealed that the first Series I bond coupon of about N63.5bn was paid in full on July 14, 2026, adding that the prompt payment has restored confidence among investors and improved liquidity across the electricity value chain. According to her, participating GenCos are now meeting gas supply obligations, servicing loans and fulfilling operational commitments, paving the way for greater private sector investment.
Also speaking, Acting Managing Director and Chief Executive Officer of NBET, Johnson Akinnawo, described the successful execution of Series I as proof that Nigeria’s power sector debt instruments are bankable. He said the government is now seeking to raise about N729bn through Series II to continue settling verified legacy debts, improve liquidity in the power sector and strengthen the financial foundation needed to deliver more reliable electricity and support economic growth.
