FG settles N333bn GenCos debts

Nigeria's Federal Government has successfully settled N333 billion in legacy debts owed to electricity generation companies (GenCos), fulfilling its commitments under the first phase of its power sector debt financing program. The government deployed approximately N501 billion in February 2026 to clear these long-standing liabilities for 17 power plants across eight participating GenCos.

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Every successful capital market tells the same story. Investors return where governments keep their promises.

This significant financial maneuver is designed to restore investor confidence in Nigeria's electricity market. The successful execution of the Series I bond issuance has laid the groundwork for a new N729 billion Series II bond, intended to deepen liquidity throughout the power value chain. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, highlighted that the administration prioritized honoring all investor obligations before seeking further capital.

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Markets do not reward promises. They reward performance. And that is why we deliberately chose execution before expansion.

Verheijen stressed that the government's reform agenda is driven by credibility and performance, not just promises. "Markets do not reward promises. They reward performance," she stated, emphasizing the shift from fiscal dysfunction to a bankable, well-governed investment opportunity. The program aims to convert past liabilities into present liquidity and future investment capacity, strengthening the entire electricity value chain, improving operations, and rebuilding sector confidence under the "Renewed Hope Agenda."

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We are converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity.