NBET begins N729bn debt settlement for Nigerian power sector

Nigerian Bulk Electricity Trading Plc (NBET) has commenced the settlement of outstanding obligations to power generation companies (GenCos) and gas suppliers. This action follows the issuance of N728.98 billion in Series 2 Bonds as part of a larger N4 trillion Power Sector Multi-Instrument Issuance Programme.

The settlement is structured through a combination of N402 billion in cash bonds and N326.98 billion in non-cash bonds. According to NBET Managing Director and CEO Akin Odeyemi, the initiative is a key component of the Presidential Power Sector Debt Reduction Programme aimed at addressing historical legacy debts.

The disbursement is intended to inject immediate liquidity into the electricity value chain, fostering a more sustainable market cash-flow framework. By improving the financial stability of the generation segment, the program seeks to support increased electricity generation and enhance overall reliability across the Nigerian electricity market.