Legacy Debts: Nigerians May See Steadier Power As NBET Starts Paying GenCos N729bn

For the households that run on generators and the small businesses that count the cost of every blackout, a debt settlement now under way in the power sector could eventually mean more reliable electricity.

The Nigerian Bulk Electricity Trading Plc (NBET) has begun paying power generation companies (GenCos) and their gas suppliers for electricity and gas supplied in the past, following the issuance and signing of N728.979 billion Series 2 Bonds.

The debts, which built up over the years, have strained the companies that generate power and supply the gas that fuels their plants. When these firms are not paid, they have less money to maintain their plants, and that can affect how much electricity reaches consumers.

NBET said the payment is meant to ease that pressure. The settlement is being made with N402 billion in cash bonds and N326.979 billion in non-cash bonds, under an approved framework.

The bonds were issued under the N4 trillion Power Sector Multi-Instrument Issuance Programme, part of the Presidential Power Sector Debt Reduction Programme.

NBET’s Managing Director/CEO, Mr Akin Odeyemi, said in a statement that the payment would restore liquidity across the electricity value chain and strengthen the finances of the companies involved.

He said a financially stronger generation segment would be better able to maintain and improve its plants, produce more electricity and make supply more reliable. He added that the development would help the market move towards a more sustainable cash-flow system, with better payment discipline and greater certainty for investors.

“Greater reliability” is what consumers, from households to market traders and factory owners, have long waited for. Whether the payments translate into steadier supply will depend on how the money is used and on the rest of the power chain.

Odeyemi said NBET is now preparing for the second phase of the programme.

However, the payment may offer only partial relief unless the sector can prevent new arrears from building up. Recall that Association of Power Generation Companies chief executive, Dr Joy Ogaji had said that while GenCos welcomed the bond programme, they want a sustainable solution that addresses both outstanding debts and fresh liabilities. She’d noted that the current bond covered obligations up to December 2024, while debts from 2025 and 2026 were continuing to accumulate.

Also, Nigeria Consumer Protection Network president Kunle Olubiyo, warned that public funding alone may not resolve the sector’s problems if inefficiencies and leakages persist. He argued that weak oversight and inflated claims could add to the costs consumers ultimately bear.

The N728.979 billion payment is the second tranche of the federal government’s Presidential Power Sector Debt Reduction Programme, approved in 2025 to settle verified legacy debts owed to electricity generation companies.

The programme’s first phase has raised about N1.23 trillion through two bond issuances: N501 billion in January 2026 and N728.979 billion in Series 2.

The wider programme, sponsored by NBET, is designed to raise up to N4 trillion for verified power-sector obligations