The Federal Government yesterday said it has paid about N333 billion to eight electricity generation companies (GenCos) under its power sector debt settlement programme, and launched a second N729 billion bond issuance aimed at clearing more legacy debts and restoring liquidity in the Nigerian Electricity Supply Industry (NESI).

Speaking at an investors’ forum organised by the Nigerian Bulk Electricity Trading (NBET) Plc in Abuja, government officials said the new bond would complete the first phase of the Presidential Power Sector Debt Reduction Programme, which seeks to resolve verified legacy liabilities and attract fresh investment into the electricity sector.

Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, said the first series of the programme had demonstrated the Federal Government’s commitment to honouring its obligations, helping to restore confidence among investors and market participants.

She disclosed that in February 2026, the government deployed about N501 billion under the first series of the programme, comprising N300 billion in cash and N201 billion in non-cash bond instruments, to settle part of the verified debts owed to GenCos.

Mr Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, said the Federal Executive Council had approved a N4 trillion Power Sector Debt Reduction Initiative after a comprehensive verification of liabilities.

According to him, the debt verification exercise reduced outstanding claims from over N4 trillion to about N3.3 trillion through line-by-line validation of services rendered.

The Minister of Power, Mr Joseph Tegbe, said resolving the liquidity crisis in the electricity market was critical to achieving reliable power supply and sustainable economic growth.

The new bond issuance, valued at about N729 billion, would complete the first phase of the debt settlement programme and extend payments to more generation companies, gas suppliers and other service providers.

The government officials urged pension funds, insurance firms, banks and other institutional investors to support the bond programme, describing it as an opportunity to partner with the Federal Government in transforming Africa’s largest electricity market.

And as Verheijen noted, 'Markets do not reward promises; they reward performance. Capital follows credibility.'

She described the programme as a development initiative designed to improve electricity reliability, support businesses and enhance Nigeria’s economic transformation.

The successful repayment of the first bond coupon had demonstrated the government’s credibility and strengthened investor confidence, said Oyedele.

'Investors do not reward intentions; they reward execution. Every commitment honoured today reduces the cost of capital tomorrow.'

He said the programme is not merely a financing transaction but a key economic reform designed to restore the commercial viability of Nigeria’s electricity market.

Verheijen highlighted the need for a comprehensive review of the power sector's financial framework to ensure that it is aligned with international best practices.

She said the government is committed to addressing the challenges facing the power sector and restoring the sector to its former glory.

The Power Sector Debt Reduction Programme aims to resolve the outstanding debts owed to GenCos and gas suppliers, thereby improving liquidity across the electricity value chain.

According to the programme's objectives, the initiative seeks to attract fresh investment into the power sector, improve electricity availability and reduce the cost of electricity.

The programme is expected to promote the development of the power sector, improve the country’s economic competitiveness and enhance the well-being of citizens.

In the light of the programme’s goals and objectives, it is clear that the Federal Government is committed to addressing the challenges facing the power sector and restoring the sector to its former glory.

The successful launch of the second bond issuance underscores the government's commitment to implementing the programme and ensuring the long-term sustainability of the power sector.

The programme is expected to be completed in phases, with each phase addressing a specific aspect of the power sector's financial challenges.

The Federal Government has demonstrated its commitment to implementing the programme and ensuring the long-term sustainability of the power sector.

In the light of the programme’s goals and objectives, it is clear that the government is on track to achieving reliable power supply and sustainable economic growth.

With the successful launch of the second bond issuance, the country is one step closer to achieving its electricity goals.