The Federal Government on Tuesday disclosed that it has paid about N333 billion to eight electricity generation companies (GenCos) under its power sector debt settlement program and launched a second N729 billion bond issuance aimed at clearing more legacy debts and restoring liquidity in the Nigerian Electricity Supply Industry (NESI).
Speaking at an investors’ forum organized by the Nigerian Bulk Electricity Trading (NBET) Plc in Abuja, government officials said the new bond would complete the first phase of the Presidential Power Sector Debt Reduction Program, which seeks to resolve verified legacy liabilities and attract fresh investment into the electricity sector.
Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, said the first series of the program had demonstrated the Federal Government’s commitment to honoring its obligations, helping to restore confidence among investors and market participants.
She disclosed that in February 2026, the government deployed about N501 billion under the first series of the program, comprising N300 billion in cash and N201 billion in non-cash bond instruments, to settle part of the verified debts owed to GenCos.
According to her, N333 billion has so far been paid to eight participating GenCos covering 17 power plants, while the first coupon payment of about N63.5 billion on the seven-year bond was made in full on July 14, 2026.
She said the timely settlement had enabled participating generation companies to meet obligations to gas suppliers, lenders, and operations and maintenance contractors, thereby improving liquidity across the electricity value chain.
“Markets do not reward promises; they reward performance. Capital follows credibility,” Verheijen said, adding that the second series would deepen market liquidity and strengthen the financial foundation required to attract long-term private investment into the power sector.
She described the program as a development initiative designed to improve electricity reliability, support businesses, and enhance Nigeria’s economic transformation.
In his address, the minister of finance and coordinating minister of the economy, Mr. Taiwo Oyedele, said the Federal Executive Council had approved a N4 trillion power sector debt reduction initiative after a comprehensive verification of liabilities.
