FG Raises N1.23tn to Clear GenCo Debts in New Initiative
On September 15, the Federal Government announced it had raised N1.23tn through two bond issuances under its Presidential Power Sector Debt Reduction Programme to address verified legacy obligations owed to electricity Generation Companies (GenCos). Akin Odeyemi, Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), revealed that N501bn was raised in the inaugural series in January, while the second series, launched in August, raised N728.9bn with participation from 11 GenCos, up from eight in the first series.
The N728.9bn from Series 2 will be implemented in two tranches. Odeyemi noted that unpaid obligations had weakened the finances of GenCos and hindered their investment capabilities.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, stated that the second series included N402bn in cash bonds and N326.9bn in non-cash bonds for participating GenCos. He emphasized that while settling the debt is crucial, it alone will not resolve the sector's financial challenges, calling for improved market discipline and accountability.
Plus234Feed summary based on reporting from The Will. Read the original report below.
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