NBET Initiates N728.979bn Payment to Boost Power Supply

The Nigerian Bulk Electricity Trading Plc (NBET) has commenced payments totaling N728.979 billion to power generation companies (GenCos) and their gas suppliers as part of a debt settlement initiative in the power sector. This payment follows the issuance and signing of Series 2 Bonds, which include N402 billion in cash bonds and N326.979 billion in non-cash bonds.

The debts have accumulated over the years, impacting the financial stability of companies responsible for electricity generation and gas supply. NBET's Managing Director/CEO, Mr Akin Odeyemi, stated that the payment aims to restore liquidity across the electricity value chain, enabling companies to maintain and enhance their plants, thus improving electricity supply reliability.

However, Dr Joy Ogaji, chief executive of the Association of Power Generation Companies, emphasized the need for a sustainable solution to address both existing debts and new liabilities. Additionally, Kunle Olubiyo, president of the Nigeria Consumer Protection Network, cautioned that public funding alone may not resolve the sector's issues if inefficiencies persist.

This payment is part of the federal government's Presidential Power Sector Debt Reduction Programme, which aims to settle verified legacy debts owed to electricity generation companies.