From David Onuoja, Abuja
The Nigerian Bulk Electricity Trading Plc (NBET), said, it is set to begin the settlement of debt owed participating Generation Companies (GenCos), and their associated Gas Companies following the successful issuance and signing of the ₦728.979 billion Series 2 Bonds under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
According to a statement issued and signed by the Managing Director/CEO
Nigerian Bulk Electricity Trading, Akin Odeyemi, said this milestone represents a significant step in the implementation of the Presidential Power Sector Debt Reduction Programme, under the visionary leadership of President Bola Ahmed Tinubu, and in furtherance of the objectives of his Renewed Hope Agenda.
The settlement, the statement added, is being undertaken through a combination of ₦402,000,000,000.00 in Cash Bonds and ₦326,979,000,000.00 in Non-Cash Bonds, in accordance with the approved settlement framework.
Related News
This, Odeyemi emphasized that the ongoing settlement marks a major step towards addressing 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.
The statement equally said that, more financially stable generation segment is also expected to strengthen the capacity of GenCos in sustaining and improving 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, to resolving longstanding legacy obligations while laying the foundation for a financially sustainable, commercially viable and investment-driven electricity market.
This current focus of Nigerian Bulk Electricity Trading is on the preparatory activities towards the commencement of the second phase of the Programme, as we continue to advance the objectives of the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
