NBET Begins Settling Legacy Debts Owed to GenCos, Gas Suppliers

The Nigerian Bulk Electricity Trading (NBET) Plc says it has begun settling participating generation companies (GenCos) and their associated gas companies under the presidential power sector debt reduction programme (PPSDRP).

In a statement on Friday, Akin Odeyemi, chief executive officer (CEO) of NBET, said the settlement follows the successful issuance and signing of the N728.97 billion series 2 bonds under the N4 trillion power sector multi-instrument issuance programme.

He said the development marks a significant step in implementing the presidential power sector debt reduction programme under the leadership of President Bola Tinubu.

The NBET CEO said settlement is being carried out through a combination of N402 billion in cash bonds and N326.97 billion in non-cash bonds, “in accordance with the approved settlement framework”.

Odeyemi said the ongoing settlement marks a major step towards resolving historical obligations, restoring liquidity across the electricity value chain and strengthening the financial position of power sector participants.

“Beyond addressing legacy obligations, this development provides a pathway for the Nigerian electricity market to progressively transition towards a more sustainable market cash-flow framework, characterised by improved payment discipline, stronger liquidity and greater commercial certainty to support continued investment across the value chain,” he said.

“A more financially stable generation segment is also expected to strengthen the capacity of GenCos to sustain and improve their generation assets, support increased electricity generation, and contribute to greater reliability across the Nigerian electricity market.

“This milestone demonstrates the Federal Government’s commitment, under the leadership of His Excellency, President Bola Ahmed Tinubu, GCFR, to resolving longstanding legacy obligations while laying the foundation for a financially sustainable, commercially viable and investment-driven electricity market.”

Odeyemi said NBET was undertaking preparatory activities for the commencement of the programme’s second phase, “as we continue to advance the objectives of the N4 trillion Power Sector Multi-Instrument Issuance Programme”.