The Nigerian Bulk Electricity Trading Plc (NBET) has commenced settlement of ₦728.979 billion in legacy debts owed to power generation companies (GenCos) and their gas suppliers, following the issuance and signing of its Series 2 bonds. This payment is expected to improve the financial health of generators and potentially enhance electricity supply for Nigerian households and businesses.
Details of the Debt Settlement
NBET confirmed that the settlement comprises ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds, structured under an approved framework. This issuance is part of the larger ₦4 trillion Power Sector Multi-Instrument Issuance Programme, an intervention under the Presidential Power Sector Debt Reduction Programme approved in 2025.
The latest issuance is the second tranche of the programme. Combined with the ₦501 billion issued in January 2026, the total raised through the two bond issuances now stands at approximately ₦1.23 trillion. The payments cover electricity and gas supplied in previous years, which have been a significant financial burden on generators, constraining plant maintenance and gas supply.
Potential Gains for Consumers
NBET's Managing Director and Chief Executive Officer, Akin Odeyemi, stated that the payments would restore liquidity across the electricity value chain and strengthen the financial position of participating companies. Financially healthier generators would be better positioned to maintain and upgrade their plants, increase electricity production, and support more dependable supply.
Odeyemi noted that the intervention would also encourage stronger payment discipline, improve cash-flow sustainability, and boost investor confidence in the electricity market. For consumers, the potential benefits include fewer disruptions linked to generators' financial difficulties, reduced spending on backup power for businesses, and longer periods of electricity supply for households.
Fresh Debts Threaten Progress
Despite welcoming the intervention, generation companies have cautioned that clearing old debts without addressing new arrears could lead to recurring problems. Dr. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, previously called for a sustainable solution covering both outstanding obligations and fresh liabilities. She noted that the bond programme covered debts up to December 2024, while obligations from 2025 and 2026 continue to accumulate.
Kunle Olubiyo, President of the Nigeria Consumer Protection Network, also warned that public funding would achieve limited results if inefficiencies and financial leakages persist. He cautioned that weak oversight and inflated claims could increase costs ultimately borne by consumers.
Next Phase of the Programme
Odeyemi indicated that NBET is preparing for the programme's second phase, as the government pursues its plan to raise up to ₦4 trillion for verified power-sector obligations. For households and businesses, the key test will be whether these financial interventions translate into steadier electricity supply while preventing another cycle of unpaid bills that undermines generation.
The federal government and Lagos State Government have also agreed to collaborate on measures for stable electricity under the proposed 24/7 Energy Zones pilot programme, following a meeting between Minister of Power Joseph Tegbe and Governor Babajide Sanwo-Olu at Lagos House, Marina.
