NBET Initiates N729bn Debt Settlement for Power Sector

The Nigerian Bulk Electricity Trading Plc (NBET) has begun settling outstanding debts to power generation companies and their associated gas suppliers, issuing N728.979 billion in bonds under the Federal Government’s N4 trillion Power Sector Multi-Instrument Issuance Programme. This settlement is part of President Bola Tinubu’s Power Sector Debt Reduction Programme and includes N402 billion in cash bonds and N326.979 billion in non-cash bonds.

Akin Odeyemi, NBET’s Managing Director and Chief Executive Officer, stated that this marks a significant step towards resolving longstanding financial obligations and restoring liquidity in the electricity sector. The Series 2 bond issuance aims to address historical debts that have negatively impacted the financial stability of electricity market participants.

Although NBET did not disclose specific amounts allocated to individual generation companies or gas suppliers, the settlement is expected to alleviate financial pressures on the power generation chain, which has faced challenges due to unpaid invoices and inadequate revenue collection.