The Nigerian Bulk Electricity Trading Plc (NBET) has commenced settling outstanding debts owed to electricity generation companies (GenCos) and their associated gas suppliers following the successful issuance of ₦728.979 billion in bonds under the Federal Government’s ₦4 trillion Power Sector Multi-Instrument Issuance Programme. Announced on Friday, October 9, 2026, the settlement forms part of President Bola Tinubu’s Power Sector Debt Reduction Programme, which aims to address longstanding financial obligations that have weakened liquidity across Nigeria’s electricity industry. NBET Managing Director and Chief Executive Officer, Akin Odeyemi, described the development as a significant step towards resolving historical debts and improving the financial stability of companies operating across the power generation and gas supply chain.According to NBET, the latest settlement comprises ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds, issued under the programme’s approved framework. The bond issuance represents the second phase of the government’s debt settlement initiative, following the first series of approximately ₦501 billion completed in January 2026. Together, the two issuances bring the total value of bonds raised under the first phase to about ₦1.23 trillion. The programme is intended to settle verified outstanding claims owed to participating power generation companies and gas suppliers, whose unpaid invoices have affected their ability to maintain generating plants, purchase gas and invest in improved electricity production.Odeyemi said the settlement would help restore liquidity throughout the electricity value chain and establish a more commercially sustainable power market by improving payment discipline and financial certainty. The government expects the improved financial position of generation companies to support the maintenance of existing facilities, encourage investment in additional capacity and contribute to more reliable electricity supply. However, NBET has not disclosed the individual amounts allocated to participating companies or the number of beneficiaries covered by the latest settlement. The agency also confirmed that preparations were underway for the next phase of the broader ₦4 trillion programme, which seeks to resolve verified legacy debts while strengthening the long-term financial sustainability of Nigeria’s electricity sector.
