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Resolving Legacy Debts Will Sustain Electricity Market- NBET

BY CHIKA OKEKE, Abuja

The Nigerian Bulk Electricity Trading Plc (NBET) has stated that resolving legacy debts would support the transition to a more sustainable electricity market, with improved payment discipline, stronger liquidity and greater commercial certainty for investors.

This followed the payment of ₦728.979 billion in legacy debts owed to participating power Generation Companies (GenCos) and their associated gas suppliers. 

The Federal Government’s Power Sector Debt Reduction Programme had issued N728.979 billion bonds, as well as the signing of the Series 2 Bonds under the N4 trillion Power Sector Multi-Instrument Issuance Programme, meant to offset the legacy debts.

Managing Director and Chief Executive Officer of NBET, Akin Odeyemi said that a financially stronger generation segment would improve the capacity of generating companies to maintain and upgrade their assets, support increased electricity generation and contribute to greater reliability in the power market.

The N728.979 billion settlement comprises N402 billion in cash bonds and N326.979 billion in non-cash bonds, in line with the approved settlement framework.

Odeyemi noted that the development demonstrated the Federal Government’s commitment to resolving outstanding obligations while establishing a financially sustainable and commercially viable electricity market capable of attracting investment.

He said: “The current focus of NBET is on preparatory activities towards the commencement of the second phase of the Programme, as we continue to advance the objectives of the N4 trillion Power Sector Multi-Instrument Issuance Programme.”

The initiative was part of the Presidential Power Sector Debt Reduction Programme being implemented under President Bola Tinubu’s administration and the Renewed Hope Agenda.

Odeyemi informed that the ongoing payments would help address longstanding financial obligations in the electricity sector, improve liquidity across the value chain and strengthen the financial position of participating companies.



 


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