NBET Launches ₦729 Billion Debt Settlement for Power Sector

The Nigerian Bulk Electricity Trading Company (NBET), led by Managing Director and Chief Executive Officer Akin Odeyemi, has commenced a ₦729 billion debt settlement for power generators. This settlement includes ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds, following the signing of Series Two bonds under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.

Odeyemi described this development as a significant milestone in President Bola Tinubu’s debt reduction initiative, which aims to resolve longstanding financial obligations and enhance liquidity within the electricity value chain. Despite the cash bonds providing some relief, concerns persist regarding the effectiveness of the non-cash bonds in meeting operational expenses for generators and gas suppliers.

Odeyemi identified challenges such as low electricity tariffs, subsidy shortfalls, and inadequate metering as ongoing issues. He emphasized that reforms are necessary to prevent new debt accumulation and ensure a sustainable cash-flow framework for the electricity market.

Preparations for the second phase of the program are underway, indicating that the debt settlement process will continue.