Power Companies Await N501bn Bond Payments in Nigeria

Five power generating companies in Nigeria have expressed concerns over the non-payment of funds from a N501 billion bond issued by the federal government to address longstanding debts in the power sector. Despite the bond's issuance in December 2023, which was part of a broader effort to restore financial stability and reduce an estimated N4 trillion owed to power generating companies, the actual disbursement of funds has not commenced.

Joi Ogaji, the Executive Secretary of the Association of Power Generating Companies, confirmed that the companies are still awaiting payments, highlighting the growing anxiety within the industry. The bond issuance was fully subscribed, attracting significant interest from pension funds and asset management institutions, indicating renewed investor confidence in the government's reform agenda.

However, the delays in disbursement raise questions about the government's ability to implement its policies effectively. The five companies involved operate 14 power plants nationwide and have a total negotiated settlement value of N827.16 billion, which is to be paid in four phases.