FG Pays N333bn to Power Generation Companies, Plans New N729bn Bond

The Federal Government has announced the payment of N333 billion to electricity generation companies (GenCos) as part of efforts to reduce longstanding debts in the power sector and improve liquidity across the electricity value chain.

Under the first phase of its Power Sector Debt Financing Programme, the government deployed about N501 billion, comprising N300 billion in cash and N201 billion in bond instruments.

The funds covered approximately 22 per cent of verified settlement obligations owed to participating power generation companies.

Speaking at an investors’ forum in Abuja, the Special Adviser to the President on Energy, Olu Verheijen, said eight GenCos operating 17 power plants have received payments under the programme.

She also noted that the government successfully paid the first bond coupon of about N63.5 billion on schedule, reinforcing investor confidence in the sector.

The government is now preparing to launch a second bond issuance worth about N729 billion to continue clearing outstanding debts and support financial stability in the electricity market.

Officials say the debt settlement programme is expected to improve liquidity, attract investment, and strengthen ongoing reforms aimed at enhancing power supply across the country.

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