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The Nigerian Bulk Electricity Trading Plc (NBET) has commenced the settlement of N729 billion in outstanding debts owed to participating electricity Generation Companies (GenCos) and their associated gas suppliers.
The development was disclosed in a statement issued on Friday, October 9, 2026, by NBET’s Managing Director and Chief Executive Officer, Akin Odeyemi, following the successful issuance and signing of the N728.979 billion Series 2 bonds under the Federal Government’s N4 trillion Power Sector Multi-Instrument Issuance Programme.
The payment is part of the Federal Government’s efforts to address mounting debts that have plagued Nigeria’s electricity sector for over a decade, weakening the financial capacity of generation companies and affecting electricity supply.
NBET details N729 billion settlement structure
According to NBET, the settlement is structured around two financing instruments, comprising N402 billion in cash bonds and N326.979 billion in non-cash bonds.
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- “The settlement is being undertaken through a combination of ₦402,000,000,000.00 in Cash Bonds and ₦326,979,000,000.00 in Non-Cash Bonds, in accordance with the approved settlement framework,” the statement said.
NBET explained that the repayments would help clear historical obligations, improve liquidity across the electricity value chain and strengthen the financial position of operators, while creating greater certainty for future investments.
The agency added that a stronger financial position would enable GenCos to maintain their facilities, improve generation capacity and contribute to more reliable electricity supply.
It also disclosed that preparations were underway for the second phase of the debt reduction programme.
Power sector bonds raise N1.23 trillion
In July 2025, President Bola Tinubu gave anticipatory approval for a N4 trillion bond initiative aimed at addressing the liquidity shortfall in Nigeria’s electricity sector and settling longstanding obligations to power producers.
Since then, the Federal Government has raised approximately N1.23 trillion through two bond issuances under the programme, as it moves to address legacy debts initially estimated at about N4 trillion.
The first issuance, completed in January 2026, raised approximately N501 billion, while the second secured N728.979 billion in September.
The Series 2 issuance, marketed in August, attracted 11 participating GenCos, compared with eight companies in the first transaction.
N3.3 trillion plan targets legacy debts
In March 2026, Nairametrics reported that several electricity generation companies had shut down operations amid a mounting N6.8 trillion debt burden, which affected their ability to maintain equipment, secure gas supplies and meet operational expenses.
- At the time, industry data showed that 16 of Nigeria’s 33 power plants were not supplying electricity to the national grid, with the remaining facilities generating a combined 3,705 megawatts.
- In April, President Bola Tinubu approved a N3.3 trillion payment plan under the Presidential Power Sector Financial Reforms Programme to settle verified legacy debts accumulated between February 2015 and March 2025.
The approved amount followed a government reconciliation exercise and differed from the wider debt burden reported by industry operators.
The bond was subsequently issued and signed in September, paving the way for the latest settlement exercise.
