NBET begins payments to GenCos under Tinubu’s ₦4trn debt reduction programme
By Onu Okorie

Nigerian Bulk Electricity Trading Plc (NBET) has commenced payments to power generation companies (GenCos) and their associated gas suppliers following the issuance and signing of ₦728.979 billion Series 2 Bonds under the Federal Government’s ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
The settlement is part of the Presidential Power Sector Debt Reduction Programme, introduced under President Bola Ahmed Tinubu’s administration to address longstanding financial obligations in the electricity sector and improve liquidity across the power value chain.
The ₦728.979 billion settlement comprises ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds, in line with the approved settlement framework.
The development marks a significant step in the Federal Government’s efforts to resolve historical debts owed to electricity market participants and strengthen the financial position of companies operating in the power sector.
According to NBET, the settlement is expected to improve liquidity among generation companies and gas suppliers, while supporting a gradual transition towards a more sustainable electricity market financing framework.
The initiative is also aimed at improving payment discipline, enhancing commercial certainty and creating a more favourable environment for investment across the electricity value chain.
Industry stakeholders have long identified outstanding payment obligations as a major challenge affecting the financial sustainability of Nigeria’s electricity market. The settlement programme is designed to address these legacy obligations and improve the capacity of market participants to meet their operational and financial commitments.
With improved cash flow, GenCos are expected to be better positioned to maintain and upgrade their generation assets, sustain operations and support efforts to increase electricity generation and improve supply reliability across the country.
The programme also seeks to strengthen confidence in the electricity market by establishing a more predictable financial environment for generation companies, gas suppliers and other participants.
The Federal Government is implementing the initiative as part of its broader efforts to reform the power sector under the Renewed Hope Agenda, with a focus on addressing structural financial challenges and promoting a commercially viable electricity market.
NBET said its current focus had shifted to preparatory activities for the commencement of the second phase of the programme.
The next phase is expected to build on the progress recorded under the Series 2 Bond issuance and advance the objectives of the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
The successful implementation of the programme is expected to play a role in addressing the electricity sector’s accumulated financial obligations and laying the groundwork for a more financially sustainable and investment-driven market.