The Federal Government on Tuesday said it has paid about ₦333.12 billion to eight electricity Generation Companies (GenCos) settling obligations tied to 17 power plants under the first phase of a broader power-sector debt resolution program.
Special Adviser to the President on Energy Olu Verheijen, disclosed this at an investor forum for the ₦729 billion Series II bond offering of the Presidential Power Sector Financial Reforms Programme (PPSFRP).
The programme aims to clear verified legacy debts across the electricity value chain and attract private capital to Nigeria’s power sector.
Verheijen said the government previously deployed roughly ₦501 billion under Series I in February 2026 — ₦300 billion in cash and about ₦201 billion in non-cash bond instruments — covering roughly 22% of the settlement obligations under executed agreements.
The remainder, she said, will be covered through Series II and later issuances.
“We met our obligation on schedule,” Verheijen said, noting the first Series I coupon — about ₦63.5 billion — was paid in full on July 14, 2026. She argued that demonstrating a record of honouring commitments is essential to securing private investment.
Verheijen said proceeds have already begun to ease pressures across the sector: participating generators are settling amounts owed to gas suppliers, lenders and operations-and-maintenance contractors.
“Bankability does not begin in financial markets. It begins with governments that honour contracts, meet obligations, and create predictable rules,” she said.
NewsQuest reports that the bond offering is more than a financial transaction, with analysts seeing it as a mechanism to restore payment discipline, strengthen cash flows and draw long-term investment that could improve reliability and cut businesses’ reliance on diesel generation.
On Monday, the government said it will issue the second tranche — about ₦729 billion — to continue settling verified legacy debts owed to GenCos.
