The Federal Government has deployed about ₦501 billion to settle part of the long-standing legacy debts owed to electricity generation companies (GenCos). The government also paid the first bond coupon on schedule, fulfilling its commitments under the first tranche of the Power Sector Debt Financing Programme.
The government disclosed that ₦333 billion has so far been paid to eight participating GenCos, covering 17 power plants, under the first phase of the Power Sector Debt Settlement Programme.
According to the government, the successful execution of Series One of the Power Sector Multi-Instrument Issuance Programme has restored investor confidence in Nigeria’s electricity market. It added that the achievement has paved the way for the launch of a ₦729 billion Series Two bond, aimed at deepening liquidity across the power value chain.
The Special Adviser to the President on Energy, Olu Verheijen, said the Tinubu administration deliberately chose to build credibility by honouring all obligations to investors before returning to the capital market for another round of fundraising.
