The Federal Government has announced the payment of ₦333.12 billion to eight electricity generation companies (GenCos) as part of efforts to clear long-standing debts in Nigeria’s power sector.
The payment, which covers 17 power plants, was made under the first phase of the Power Sector Debt Settlement Programme, aimed at improving liquidity and restoring confidence in the electricity industry.
Speaking on Tuesday during the investor forum for the ₦729 billion Series II bond issuance under the Presidential Power Sector Financial Reforms Programme (PPSFRP), the President’s Special Adviser on Energy, Olu Verheijen, said the government had fulfilled its commitments under the first phase of the programme.
“To date, ₦333.12 billion has been settled to the eight participating generation companies, covering seventeen power plants that have executed participation agreements,” she said.
Verheijen explained that in February 2026, the government released about ₦501 billion under Series I, made up of ₦300 billion in cash and about ₦201 billion in non-cash bond instruments, covering roughly 22 per cent of the verified settlement obligations.
She also disclosed that the first Series I bond coupon worth about ₦63.5 billion was paid in full on July 14, 2026.
According to her, honouring these obligations is helping to rebuild investor confidence and improve the financial health of Nigeria’s power sector.
“Capital follows credibility. That principle has guided every stage of this programme,” Verheijen said.
She added that the payments have enabled participating GenCos to meet outstanding obligations to gas suppliers, lenders, and maintenance contractors, while also improving confidence among investors.
The government noted that the upcoming ₦729 billion Series II bond will be used to settle more verified legacy debts, strengthen cash flow across the electricity value chain, and attract more private investment into the sector.
Verheijen said the reforms are ultimately aimed at improving electricity supply, reducing dependence on expensive alternatives like diesel, and supporting economic growth across the country.
