The Nigerian Bulk Electricity Trading Plc (NBET) has commenced payments to participating power generation companies (GenCos) and their associated gas suppliers following the issuance of N728.979 billion in bonds under the Federal Government’s Power Sector Debt Reduction Programme. The settlement follows the successful issuance and signing of the Series 2 Bonds under the N4 trillion Power Sector Multi-Instrument Issuance Programme, according to a statement by NBET Managing Director and Chief Executive Officer, Akin Odeyemi.
The N728.979 billion settlement comprises N402 billion in cash bonds and N326.979 billion in non-cash bonds, in line with the approved settlement framework. NBET said the initiative was part of the Presidential Power Sector Debt Reduction Programme being implemented under President Bola Tinubu’s administration and the Renewed Hope Agenda. The company said the ongoing payments would help address longstanding financial obligations in the electricity sector, improve liquidity across the value chain and strengthen the financial position of participating companies.
“The ongoing settlement marks a major step towards addressing historical obligations, restoring liquidity across the electricity value chain, and strengthening the financial position of power sector participants,” the statement said. It added that resolving the legacy debts would support the transition to a more sustainable electricity market, with improved payment discipline, stronger liquidity and greater commercial certainty for investors.
According to NBET, a financially stronger generation segment would also improve the capacity of generating companies to maintain and upgrade their assets, support increased electricity generation and contribute to greater reliability in the power market. The company said the development demonstrated the Federal Government’s commitment to resolving outstanding obligations while establishing a financially sustainable and commercially viable electricity market capable of attracting investment.
NBET added that it was now preparing for the second phase of the programme. “The current focus of Nigerian Bulk Electricity Trading Plc (NBET) is on preparatory activities towards the commencement of the second phase of the Programme, as we continue to advance the objectives of the N4 trillion Power Sector Multi-Instrument Issuance Programme,” Odeyemi said.
