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The Nigerian Government says it has fulfilled all obligations under the first phase of its power sector debt financing programme, deploying about ₦501 billion to reduce legacy debts owed to electricity generation companies (GenCos) and meeting its first bond payment as scheduled.
Speaking at the Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Series II Bond Issue Investors’ Forum in Abuja on Tuesday, the President’s Special Adviser on Energy, Olu Verheijen, said ₦333 billion had already been paid to eight participating GenCos operating 17 power plants.
She explained that the first phase of the Power Sector Multi-Instrument Issuance Programme injected ₦300 billion in cash and ₦201 billion in non-cash bond instruments, covering about 22 per cent of verified settlement obligations.
According to Verheijen, the Nigerian Government deliberately honoured its commitments before returning to the capital market, saying timely execution had strengthened investor confidence in the electricity sector.
She disclosed that the first Series I bond coupon of about ₦63.5 billion was paid in full on July 14, 2026, describing the payment as evidence of the government’s commitment to restoring credibility and attracting private investment.
Verheijen said the intervention had improved liquidity across the electricity value chain, enabling participating GenCos to meet gas supply obligations, service debts and fund operational activities.
She added that the Nigerian Government was now preparing to launch a ₦729 billion Series II bond to continue settling verified legacy debts and strengthen the financial stability of the power sector.
Also speaking, the Acting Managing Director of NBET, Johnson Akinnawo, said the successful execution of Series I had demonstrated that power sector debt instruments could attract investor confidence through transparent capital market financing.
He noted that the first issuance helped improve liquidity across the electricity industry and described Nigerian power sector securities as increasingly bankable.
The debt settlement programme, established under the Presidential Power Sector Financial Reforms Programme, aims to address long-standing debts owed to GenCos, improve cash flow within the electricity market, and encourage long-term private investment.
