Nigeria pays N330bn to power firms, issues N729bn bonds to investors

Nigeria's Federal Government has settled approximately N333 billion in debts owed to eight electricity generation companies (GenCos) through its power sector debt settlement program. This payment is part of a larger initiative to clear legacy debts and inject much-needed liquidity into the Nigerian Electricity Supply Industry (NESI).

The government also launched a second bond issuance valued at N729 billion. This issuance is intended to complete the first phase of the Presidential Power Sector Debt Reduction Programme. The program aims to resolve verified legacy liabilities and encourage new investments in the power sector.

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Markets do not reward promises; they reward performance. Capital follows credibility.

Officials highlighted that the program's first series, which saw N501 billion deployed in February 2026 (N300 billion cash, N201 billion non-cash bonds), has already restored investor confidence. The timely settlement allowed GenCos to meet obligations to gas suppliers, lenders, and maintenance contractors, improving liquidity across the value chain. "Markets do not reward promises; they reward performance. Capital follows credibility," stated Mrs. Olu Verheijen, Special Adviser to the President on Oil and Gas.

The Minister of Finance, Mr. Taiwo Oyedele, noted that the Federal Executive Council approved a N4 trillion initiative after verifying liabilities, reducing claims from over N4 trillion to N3.3 trillion. The second bond issuance will extend payments to more GenCos, gas suppliers, and service providers, further strengthening the financial foundation for attracting long-term private investment.

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Investors do not reward intentions; they reward execution. Every commitment honoured today reduces