The Nigerian Bulk Electricity Trading Plc (NBET) has commenced the settlement of outstanding legacy debts owed to power Generation Companies (GenCos) and their gas suppliers under the Federal Government’s Presidential Power Sector Debt Reduction Programme.
Speaking in Abuja on Friday, NBET Managing Director Mr. Akin Odeyemi confirmed that the disbursement followed the successful issuance and signing of ₦728.979 billion Series 2 Bonds, part of the broader ₦4 trillion Power Sector Multi-Instrument Issuance Programme under President Bola Tinubu’s Renewed Hope Agenda.
Odeyemi detailed that the current settlement package consists of:
Cash Bonds: ₦402 billion
Non-Cash Bonds: ₦326.979 billion
Odeyemi described the payment as a major milestone aimed at resolving deep-rooted financial bottlenecks and injecting critical liquidity across Nigeria’s electricity value chain.
“Beyond addressing legacy obligations, this development provides a pathway for the Nigerian electricity market to progressively transition toward a more sustainable market cash-flow framework,” Odeyemi stated.
He noted that restoring financial health to the generation sector would enable GenCos to maintain and upgrade their power infrastructure, boost generation capacity, and improve power supply reliability for consumers nationwide.
The NBET chief highlighted that resolving these historical debts lays a solid foundation for a commercially viable and investment-friendly electricity market characterized by improved payment discipline and commercial certainty.
Odeyemi added that NBET has already initiated preparatory activities for the second phase of the programme as it continues to execute the ₦4 trillion debt-clearing initiative. (NAN)
