NBET Begins Settlement Of GenCos, Gas Suppliers After N728.98bn Bond Issuance

The Nigerian Bulk Electricity Trading Plc (NBET) has begun settling participating Generation Companies (GenCos) and their associated gas suppliers following the issuance and signing of the N728.979 billion Series 2 Bonds.

The bonds were issued under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme, which is part of the Presidential Power Sector Debt Reduction Programme.

According to NBET, the settlement is being made through N402 billion in cash bonds and N326.979 billion in non-cash bonds, in line with the approved settlement framework.

The company said the exercise is meant to address historical obligations, restore liquidity across the electricity value chain and strengthen the finances of power sector operators.

The managing director/CEO of NBET, Akin Odeyemi, who made this known on Friday, said the development would also help the electricity market move gradually towards a more sustainable cash-flow system, with better payment discipline, stronger liquidity and greater commercial certainty to support investment across the value chain.

He added that a financially stronger generation segment would be better placed to maintain and improve its assets, raise electricity output and make supply more reliable.

Odeyemi described the settlement as evidence of the Federal Government’s commitment, under President Bola Tinubu, to resolving long-standing legacy debts and building a financially sustainable, commercially viable and investment-driven electricity market.

He said NBET’s current focus is on preparatory activities for the second phase of the programme, as it continues to pursue the objectives of the N4 trillion