FG pays N333bn to GenCos and meets first bond coupon obligation
The Federal Government has settled a significant portion of its legacy debts to electricity generation companies, paying N333bn to eight GenCos as part of its power sector reform. Bola Tinubu’s administration, through the Presidential Power Sector Financial Reforms Programme, has also paid the first bond coupon on schedule. Officials say these actions have restored investor confidence and improved liquidity in the electricity sector. The government now plans to launch a second bond series to further deepen reforms and attract private investment.
What we know
- The Federal Government paid N333bn to eight participating GenCos, covering 17 power plants, as part of the first phase of the debt settlement programme.
- Olu Verheijen, Special Adviser to Bola Tinubu on Energy, announced that the first bond coupon, about N63.5bn, was paid in full on July 14, 2026.
- The government injected approximately N501bn into the settlement programme in February 2026, using both cash and non-cash bond instruments.
- Improved liquidity has allowed GenCos to meet gas obligations and fulfil previously unmet contracts, boosting confidence in the sector.
- The government plans to raise about N729bn under Series II to continue settling verified legacy obligations and strengthen the electricity market.
