NBET commences part-payment of N4trn debt to GenCos

THE Nigerian Bulk Electricity Trading Plc (NBET) has commenced the settlement of participating Generation Companies (GenCos) and their associated Gas Companies following the successful issuance and signing of the ₦728.979 billion Series 2 Bonds under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.

The milestone, according to the Company, represented a significant step in the implementation of the Presidential Power Sector Debt Reduction Programme, under the President Bola Ahmed Tinubu Renewed Hope Agenda.

Managing Director/CEO, NBET, Akin Odeyemi, said 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.

Odeyemi said the ongoing settlement signalled a major step towards addressing historical obligations, restoring liquidity across the electricity value chain and strengthening the financial position of power sector participants.

He added that beyond addressing legacy obligations, the development provided a pathway for the Nigerian electricity market to progressively transition towards a more sustainable market cash-flow framework, characterised by improved payment discipline, stronger liquidity and greater commercial certainty to support continued investment across the value chain.

 A more financially stable generation segment is also expected to strengthen the capacity of GenCos to sustain and improve their generation assets, support increased electricity generation, and contribute to greater reliability across the Nigerian electricity market.

ALSO READ: FG rolls out measures to cushion impact of fuel prices on Nigerians

 This milestone demonstrates the Federal Government’s commitment, under the leadership of His Excellency, President Bola Ahmed Tinubu, GCFR, to resolving longstanding legacy obligations while laying the foundation for a financially sustainable, commercially viable and investment-driven electricity market.

 The current focus of Nigerian Bulk Electricity Trading Plc (NBET) is on preparatory activities towards the commencement of the second phase of the Programme, as we continue to advance the objectives of the ₦4 trillion Power Sector Multi-Instrument Issuance Programme,  Odeyemi stated.