GenCos decry non-payment regardless of N501bn debt bond scheme

Three months after the Federal Authorities issued a N501bn bond to kick-start the settlement of longstanding electrical energy money owed, energy technology firms have but to obtain any cost, elevating recent issues over liquidity in Nigeria’s fragile energy sector.

The event comes regardless of the federal government’s announcement of the Presidential Energy Sector Debt Discount Programme geared toward clearing an estimated N4tn owed to GenCos for electrical energy provided to the nationwide grid over the previous decade.

Findings by The PidomNigeria confirmed that though 5 technology firms had signed settlement agreements underneath the programme in January 2026, the disbursement of funds to beneficiaries had not commenced as of Sunday.

The 5 energy technology firms are among the many over 20 GenCos working inside Nigeria’s electrical energy market.

The Government Secretary of the Affiliation of Energy Technology Firms, Pleasure Ogaji, confirmed the delay in a chat with our correspondent on Sunday, noting that trade gamers had been nonetheless awaiting the precise stream of funds.

She stated, “Solely 5 GenCos signed. As of right this moment, I requested one of many assignees, they usually stated no cost has been obtained.” Her remarks underscore rising nervousness throughout the Nigerian Electrical energy Provide Trade, the place stakeholders had hoped that the bond issuance would instantly ease the extreme money crunch going through operators.

The Federal Authorities had, in December, issued the N501bn bond in Lagos as a part of broader efforts to revive monetary stability to the sector. The instrument, which recorded 100 per cent subscription, attracted sturdy curiosity from pension funds, banks, asset managers, and different institutional buyers.

Officers had described the total subscription as an indication of renewed investor confidence within the authorities’s reform agenda and its willingness to handle legacy challenges within the energy sector.

Nonetheless, regardless of the profitable fundraising, the delay in disbursement is now elevating questions in regards to the tempo of implementation of the programme and the federal government’s potential to translate coverage commitments into tangible aid for operators.

The Particular Adviser to the President on Vitality, Olu Verheijen, on the signing ceremony, stated the bond issuance marked a decisive reset of the electrical energy market, combining debt decision with broader monetary and structural reforms geared toward restoring confidence and long-term monetary sustainability to the sector.

She defined that the inaugural Collection 1 Energy Sector Bond issuance, executed by NBET Finance Firm Plc, closed at N501bn, comprising N300bn raised from the capital market and N201bn allotted in bonds to taking part energy technology firms.

Verheijen stated underneath the programme, verified receivables for electrical energy provided between February 2015 and March 2025 had been being settled via negotiated agreements with energy technology firms.

She disclosed that 5 technology firms working 14 energy vegetation nationwide—First Unbiased Energy Restricted, Geregu Energy Plc, Ibom Energy Firm Restricted, Mabon Restricted, and the Niger Delta Energy Holding Firm Restricted—have executed settlement agreements with the Nigerian Bulk Electrical energy Buying and selling Plc.

In keeping with her, the entire negotiated settlement worth for the 5 firms stands at N827.16bn and shall be paid in 4 phased instalments. The continued delay might additional pressure GenCos, a lot of that are already grappling with mounting operational prices, international alternate volatility, and fuel provide constraints.

The facility technology firms have repeatedly complained that the buildup of unpaid invoices has weakened their steadiness sheets, restricted their capability to take care of infrastructure, and discouraged recent funding within the sector.

The N4tn debt, largely arising from tariff shortfalls and market inefficiencies, has been a serious bottleneck in Nigeria’s electrical energy worth chain, affecting not solely technology but additionally transmission and distribution segments.

Underneath the debt discount programme, the Federal Authorities had pledged to clear a considerable portion of the arrears via a mix of bond issuances and structured funds to enhance service supply throughout the sector.

Efforts to get an official response from the workplace of the Particular Adviser to the President on Vitality on the delay had been unsuccessful as of the time of submitting this report.

The newest improvement highlights the persistent structural challenges in Nigeria’s energy sector, at the same time as authorities proceed to roll out reforms geared toward repositioning the trade for sustainable progress.