FG Begins ₦729bn Payment to Power Firms, Gas Suppliers

 

The Federal Government has commenced settling verified debts owed to electricity generation companies (GenCos) and their associated gas suppliers following the issuance of ₦728.979 billion in bonds under its power sector debt reduction programme.

The Nigerian Bulk Electricity Trading Plc (NBET) confirmed the commencement of payments in October, following the successful completion of the Series 2 bond transaction.

The transaction comprises ₦402 billion in cash bonds raised from the domestic capital market and ₦326.979 billion in non-cash bonds allocated to participating generation companies.

The bond forms part of the Federal Government’s ₦4 trillion Power Sector Multi-Instrument Issuance Programme, designed to settle longstanding liabilities that have weakened liquidity and constrained investment across the electricity supply chain.

NBET Managing Director, Akin Odeyemi, described the transaction as a significant step towards resolving legacy debts and improving financial stability in the sector.

The latest issuance brings the total raised under the programme to approximately ₦1.23 trillion, following an earlier ₦501 billion bond issued in January 2026. Eleven generation companies participated in the second series, compared with eight in the first. 

However, the debt settlement comes amid persistent concerns over electricity tariffs, subsidy costs and unreliable power supply.

The Nigerian Electricity Regulatory Commission reported that government electricity tariff subsidy obligations reached approximately ₦1.928 trillion in 2025, underscoring the financial pressure confronting the sector. 

The government is expected to complement the payments with broader reforms aimed at improving investment, strengthening market discipline and delivering more reliable electricity to consumers.