On Tuesday, the Nigerian Federal Government announced it has distributed approximately N333 billion to eight electricity generation companies to address outstanding debts. This action, part of a broader power sector recovery initiative, was accompanied by the launch of a N729 billion bond series intended to further clear legacy liabilities and improve market liquidity. During an investment summit hosted 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.
Special Adviser to the President on Oil and Gas, Olu Verheijen, noted that the government previously utilized N501 billion in early 2026 to start settling verified claims. To date, payments have reached eight generation companies operating 17 facilities, with a N63.5 billion coupon payment on existing bonds successfully cleared in July 2026. This financial intervention has allowed companies to satisfy their own obligations to gas providers and contractors, fostering stability within the sector.
Minister of Finance Taiwo Oyedele reported that a comprehensive audit successfully brought the total debt burden down from over N4 trillion to N3.3 trillion. The government now plans to extend these settlement efforts to additional service providers through the new bond issuance. Minister of Power Joseph Tegbe emphasized that resolving these liquidity issues is essential for achieving a reliable power supply. He invited institutional investors, including banks and pension funds, to view the bond as a strategic opportunity to support the commercial revitalization of Nigeria’s electricity market.
