Power firms await payment despite N501bn bond for electricity debts
Three months after the Federal Government announced a N501bn bond to settle longstanding debts, power generation companies in Nigeria say they have not received any payments. The Presidential Power Sector Debt Reduction Programme was launched to address an estimated N4tn owed to GenCos. Industry stakeholders, including Joy Ogaji and Olu Verheijen, have confirmed the delay, raising concerns about liquidity and the effectiveness of recent reforms. Five generation companies signed settlement agreements, but the disbursement of funds has yet to begin.
TLDR
- The Federal Government issued a N501bn bond to settle electricity sector debts, but GenCos report no payments have been made.
- Five power generation companies signed settlement agreements under the programme, but disbursement has not started.
- Joy Ogaji, Executive Secretary of the Association of Power Generation Companies, confirmed the delay and ongoing anxiety among operators.
- Olu Verheijen, Special Adviser to the President on Energy, said the bond was fully subscribed and aimed to restore confidence in the sector.
- The continued delay is increasing financial strain on GenCos, who face mounting operational costs and have repeatedly complained about unpaid invoices.
