FG settles N333bn GenCos debt, dispatches first coupon payment

By Abubakar Yunus

The Federal Government on Tuesday said it had fulfilled all commitments under the first tranche of its power sector debt financing programme, disclosing that it deployed about N501bn to settle part of the long-standing legacy debts owed to electricity generation companies and paid the first bond coupon on schedule.
It disclosed that N333bn has so far been paid to eight participating GenCos covering 17 power plants under the first phase of the power sector debt settlement programme.
The government said the successful execution of Series I of the Power Sector Multi-Instrument Issuance Programme had restored investor confidence in Nigeria’s electricity market and laid the foundation for the launch of a N729bn Series II bond, which it said would deepen liquidity across the power value chain.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this on Tuesday at the Nigerian Bulk Electricity Trading Finance Company Plc Series II Bond Issue Investors’ Forum in Abuja.
According to her, the Tinubu administration deliberately chose to demonstrate its credibility by honouring every obligation to investors before returning to the capital market for another round of fundraising.
She said, “Every successful capital market tells the same story. Investors return where governments keep their promises. And today’s lecture is exactly about that. President Bola Tinubu’s administration has demonstrated, beyond doubt, its commitment to making a clean break from the fiscal dysfunction that once defined Nigeria’s power sector.
“Through bold policy decisions and disciplined execution, we are converting an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust.”
Verheijen explained that rather than merely restructuring debts on paper, the government had begun converting legacy liabilities into fresh liquidity capable of supporting investments across the electricity value chain.
She said, “We are converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity. That liquidity, if sustained, will strengthen the entire electricity value chain, improve operational performance, and restore confidence across the sector. That is precisely what the Presidential Power Sector Financial Reforms Programme was established to achieve under the Renewed Hope Agenda.”
She stressed that credibility, not promises, was driving the government’s reform agenda.
According to her, “Markets do not reward promises. They reward performance. And that is why we deliberately chose execution before expansion.”
Providing details of the first issuance, Verheijen disclosed that the Federal Government injected approximately N501bn into the settlement programme in February this year.
She said, “Series I delivered on its promise. In February 2026, the Federal Government deployed approximately N501bn—N300bn in cash and N201bn through non-cash bond instruments—addressing approximately 22 per cent of the settlement obligations under executed settlement agreements, with the balance to be covered through Series II and subsequent issuances.”
She further revealed that the settlement had already benefited eight electricity generation companies operating 17 power plants.