FG pays N330bn to GenCos, issues N729bn bonds to investors to ease power concerns

The Federal Government disclosed on Tuesday, July 21, that it has disbursed approximately N333 billion to eight electricity generation companies (GenCos) as part of its ongoing power sector debt resolution framework.
Concurrently, the government launched a second bond issuance valued at N729 billion, designed to settle outstanding legacy debts and inject liquidity into the Nigerian Electricity Supply Industry (NESI).
Addressing stakeholders at an investors’ forum organized by the Nigerian Bulk Electricity Trading (NBET) Plc in Abuja, government representatives noted that the fresh bond issuance completes the initial phase of the Presidential Power Sector Debt Reduction Programme, an initiative structured to address verified liabilities and stimulate private capital injection across the power value chain.
Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, stated that the execution of the initial series underscores the administration’s commitment to fulfilling its financial obligations, thereby bolstering market confidence. She revealed that in February 2026, the government allocated roughly N501 billion under the program’s first tranche, comprising N300 billion in cash alongside N201 billion in non-cash bond instruments—to offset verified debts owed to power producers.
According to Verheijen, N333 billion has been distributed across eight participating GenCos operating 17 power plants. Additionally, the government fulfilled the first coupon payment of about N63.5 billion on the seven-year bond in full on July 14, 2026.
She highlighted that these timely disbursements have assisted generation companies in meeting critical financial obligations to gas suppliers, lenders, and operations and maintenance contractors, enhancing operational liquidity.
“Markets do not reward promises; they reward performance. Capital follows credibility,” Verheijen remarked, noting that the second series aims to further deepen market liquidity and solidify the financial structure necessary to attract sustained private investment to the power sector.