The Nigerian Bulk Electricity Trading Plc has commenced the settlement of N729 billion in outstanding obligations owed to participating electricity Generation Companies and their associated gas suppliers, a step intended to relieve financial pressure across the power value chain.
Akin Odeyemi, the agency's managing director and chief executive officer, confirmed the development in a statement dated Friday, October 9, 2026. The exercise follows the successful issuance and signing of the N728.979 billion Series 2 bonds under the Federal Government's N4 trillion Power Sector Multi-Instrument Issuance Programme.
NBET stated that the settlement is structured around two financing instruments, comprising N402 billion in cash bonds and N326.979 billion in non-cash bonds, in line with the approved settlement framework.
The agency said the repayments are expected to clear historical obligations, improve liquidity along the electricity value chain and strengthen the financial position of operators, while creating greater certainty for future investments. A stronger financial base, it added, should allow generation companies to maintain their facilities, improve generation capacity and support more reliable electricity supply. Preparations for the second phase of the debt reduction programme are already underway.
The broader initiative traces back to July 2025, when President Bola Tinubu granted anticipatory approval for a N4 trillion bond scheme aimed at resolving the liquidity shortfall in the electricity sector and settling longstanding liabilities to power producers. Since then, the Federal Government has raised approximately N1.23 trillion through two bond issuances, against legacy debts initially estimated at about N4 trillion.
The first issuance, completed in January 2026, raised approximately N501 billion, while the second secured N728.979 billion in September. The Series 2 offer, marketed in August, attracted 11 participating generation companies, compared with eight firms in the first transaction.
In March 2026, Nairametrics reported that several electricity generation companies had shut down operations amid a N6.8 trillion debt burden. Industry data at the time showed that 16 of Nigeria's 33 power plants were not supplying electricity to the national grid, while the remaining facilities generated a combined 3,705 megawatts.
