The Federal Government has paid about N333 billion to eight electricity generation companies (GenCos) under its power sector debt settlement programme and launched a second bond issuance worth N729 billion to clear additional legacy debts and improve liquidity in the Nigerian Electricity Supply Industry (NESI).
The disclosure was made on Tuesday at an investors’ forum organised by the Nigerian Bulk Electricity Trading (NBET) Plc in Abuja.
Government officials said the new bond issuance marks the completion of the first phase of the Presidential Power Sector Debt Reduction Programme, which is aimed at settling verified legacy liabilities, restoring investor confidence and attracting fresh investment into the electricity sector.
Speaking at the event, the Special Adviser to the President on Energy, Olu Verheijen, said the first phase of the programme had demonstrated the Federal Government’s commitment to meeting its financial obligations and rebuilding confidence among investors and market participants.
She revealed that in February 2026, the government deployed about N501 billion under the first phase of the initiative, comprising N300 billion in cash payments and N201 billion in non-cash bond instruments, to settle part of the verified debts owed to electricity generation companies.
According to her, about N333 billion has already been disbursed to eight participating GenCos operating 17 power plants.
She added that the government also honoured the first coupon payment of approximately N63.5 billion on the seven-year bond on July 14, 2026.
Verheijen said the payments had enabled participating generation companies to meet financial obligations to gas suppliers, lenders and operations and maintenance contractors, thereby improving liquidity across the electricity value chain.
“Markets do not reward promises; they reward performance. Capital follows credibility,” she said, noting that the second bond issuance would further strengthen market liquidity and create a more stable financial foundation for long-term private sector investment in the power industry.
She described the debt reduction programme as a strategic intervention designed to improve electricity supply, support businesses and accelerate Nigeria’s economic growth.
Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that the Federal Executive Council had approved a N4 trillion Power Sector Debt Reduction Initiative following a comprehensive verification of outstanding liabilities across the sector.
