NBET begins settling power generators and gas suppliers through ₦728.98 billion in bonds under the Federal Government’s ₦4 trillion debt reduction programme.
The Nigerian Bulk Electricity Trading Plc (NBET) has started paying power generation companies (GenCos) and their associated gas suppliers.
The payments follow the signing of ₦728.979 billion in Series 2 bonds under the Federal Government’s ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
The settlement forms part of the Presidential Power Sector Debt Reduction Programme under President Bola Tinubu’s Renewed Hope Agenda.
NBET Managing Director and Chief Executive Officer, Akin Odeyemi, said the settlement includes ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds.
He said the payments would address historical debts and improve cash flow across the electricity value chain. They would also strengthen the finances of power sector participants.
Odeyemi said the programme would promote better payment discipline and improve financial stability in the electricity market. He added that greater commercial certainty could support further investment across the sector.
Stronger finances could help GenCos maintain and upgrade their power plants. This could increase electricity generation and improve supply reliability.
NBET said the programme reflects the Federal Government’s commitment to settling longstanding power sector debts. It also aims to build a financially sustainable electricity market.
Odeyemi said NBET was preparing for the programme’s second phase.