The Federal Government of Nigeria announced a disbursement of N333 billion to eight electricity generation companies (GenCos) as part of its ongoing power sector debt settlement strategy. To further address historical liabilities and boost liquidity within the Nigerian Electricity Supply Industry, the government introduced a second bond issuance valued at N729 billion.
During an investors’ forum held by the Nigerian Bulk Electricity Trading Plc in Abuja, officials confirmed that this new bond concludes the initial stage of the Presidential Power Sector Debt Reduction Programme. The initiative aims to reconcile verified debts and encourage new capital infusion into the power sector.
Olu Verheijen, the Special Adviser to the President on Oil and Gas, noted that the government had already distributed N501 billion during the first phase, which included N300 billion in cash and N201 billion in bonds. As of now, 17 power plants across eight companies have received payment, and a coupon payment of N63.5 billion was successfully processed in July 2026. This financial injection has allowed firms to settle arrears with gas suppliers and service contractors.
Finance Minister Taiwo Oyedele reported that the Federal Executive Council approved a broader N4 trillion debt reduction initiative following a thorough verification process that reduced total claims to N3.3 trillion. The current N729 billion bond issuance is designed to expand debt relief to a wider range of suppliers and operators.
Minister of Power Joseph Tegbe emphasized that stabilizing market liquidity is essential for reliable power and national economic growth. He invited institutional investors, including banks and pension funds, to participate in the bond program to support the transformation of the Nigerian electricity market.
