Expect Improved Power: NBET Begins Paying N729bn Legacy Debts to GenCos
- NBET is settling ₦728.979 billion in legacy debts owed to power generators and gas suppliers through its second bond issuance
- Debt repayment could improve generators’ finances and electricity supply, but consumers’ gains depend on gas, plants and grid infrastructure
- GenCos warn fresh arrears could undermine progress, as NBET prepares another phase of the ₦4 trillion debt-reduction programme
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
For Nigerian households and businesses battling frequent blackouts and rising generator costs, a fresh payment of longstanding power-sector debts is raising hopes of more reliable electricity.
The Nigerian Bulk Electricity Trading Plc (NBET) has begun settling ₦728.979 billion owed to power generation companies (GenCos) and their gas suppliers, following the issuance and signing of its Series 2 bonds.
Source: Getty Images
The payments cover electricity and gas supplied in previous years. These unpaid obligations have weakened generators’ finances, constrained plant maintenance and put pressure on the gas supplies needed to produce electricity.
How the debt settlement works
NBET said the settlement comprises ₦402 billion in cash bonds and ₦326.979 billion in non-cash bonds, structured under an approved framework.
The issuance forms part of the ₦4 trillion Power Sector Multi-Instrument Issuance Programme, an intervention under the Presidential Power Sector Debt Reduction Programme.
Approved in 2025, the broader initiative targets verified legacy debts owed to electricity generation companies and seeks to ease financial pressures across the sector.
The latest issuance is the programme’s second tranche. Together with the ₦501 billion issued in January 2026, it brings the amount raised through the two bond issuances to approximately ₦1.23 trillion.
What consumers could gain
NBET’s Managing Director and Chief Executive Officer, Akin Odeyemi, said the payments would restore liquidity across the electricity value chain and strengthen the financial position of participating companies.
According to him, financially healthier generators would be better placed to maintain and upgrade their plants, increase electricity production and support more dependable supply.
He said the intervention would also encourage stronger payment discipline, improve cash-flow sustainability and give investors greater confidence in the electricity market.
For consumers, the potential benefit is fewer disruptions linked to generators’ financial difficulties. Businesses could spend less on backup power, while households could enjoy longer periods of electricity supply.
However, debt repayment alone does not guarantee an immediate improvement. Any gains will also depend on plant performance, gas availability and the ability of transmission and distribution infrastructure to deliver power.
Fresh debts threaten progress
Despite welcoming the intervention, generation companies have warned that clearing old debts without tackling new arrears could leave the sector facing the same problems.
The Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, previously called for a sustainable solution covering both outstanding obligations and fresh liabilities.
She noted that the bond programme covered debts up to December 2024, while obligations from 2025 and 2026 continued to accumulate, according to a report by Leadership.
Nigeria Consumer Protection Network President, Kunle Olubiyo, also cautioned that public funding would achieve limited results if inefficiencies and financial leakages persisted.
He warned that weak oversight and inflated claims could increase costs ultimately borne by consumers.
Another phase ahead
Source: Getty Images
Odeyemi said NBET was preparing for the programme’s second phase, as the government pursues its wider plan to raise up to ₦4 trillion for verified power-sector obligations.
For households and businesses, the test will be whether these financial interventions translate into steadier electricity, while preventing another cycle of unpaid bills that undermines generation and supply.
FG launches new power initiative in Lagos
Legit.ng p reported that the federal government and the Lagos State Government have agreed to collaborate on measures aimed at providing stable and reliable electricity to Lagos under the proposed 24/7 Energy Zones pilot programme.
The agreement was reached during a high-level technical meeting between the Minister of Power, Joseph Tegbe, and Lagos State Governor Babajide Sanwo-Olu at the Lagos House, Marina.
Source: Legit.ng
