FG Settles N333bn Debts to Electricity Generation Firms

On Tuesday, the Federal Government announced the fulfillment of commitments under the first tranche of its power sector debt financing program, having deployed approximately N501bn to address long-standing legacy debts owed to electricity generation companies (GenCos). Of this amount, N333bn has been paid to eight participating GenCos covering 17 power plants.

The announcement was made by Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, at the NBET Finance Company Plc Series II Bond Issue Investors’ Forum in Abuja. The government emphasized that the successful execution of Series I of the Power Sector Multi-Instrument Issuance Programme has restored investor confidence in Nigeria’s electricity market.

Verheijen stated that the Tinubu administration is committed to converting legacy liabilities into fresh liquidity to support investments across the electricity value chain. The government plans to launch a N729bn Series II bond to further enhance liquidity in the sector.