The Nigerian Bulk Electricity Trading Plc (NBET) has commenced settlement of Generation Companies (GenCos) and their associated gas companies under the Presidential Power Sector Debt Reduction Programme.
The payment follows the successful issuance and signing of N728.979 billion Series 2 Bonds under the N4 trillion Power Sector Multi-Instrument Issuance Programme.
In a statement on Friday, the Managing Director/Chief Executive Officer of NBET, Akin Odeyemi, said the settlement is being undertaken through a combination of N402 billion in Cash Bonds and N326.979 billion in Non-Cash Bonds, in accordance with the approved settlement framework.
He said the development represents a significant step in the implementation of the programme under President Bola Tinubu and in furtherance of the objectives of the Renewed Hope Agenda.
Mr Odeyemi described the settlement as a major step towards addressing historical obligations, restoring liquidity across the electricity value chain and strengthening the financial position of power sector participants.
“Beyond addressing legacy obligations, this development provides 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,” he said.
According to him, a more financially stable generation segment is 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.
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He said the milestone demonstrates the federal government’s commitment, under President Tinubu, to resolving longstanding legacy obligations while laying the foundation for a financially sustainable, commercially viable and investment-driven electricity market.
Mr Odeyemi said NBET is now focused on preparatory activities towards the commencement of the second phase of the programme.
“This milestone demonstrates the federal government’s commitment, under the leadership of His Excellency, President Bola Ahmed Tinubu, to resolving longstanding legacy obligations while laying the foundation for a financially sustainable, commercially viable and investment-driven electricity market,” he said.
NBET is the bulk trader in the power sector and is currently advancing the objectives of the N4 trillion Power Sector Multi-Instrument Issuance Programme.
