The Federal Government has greenlit a ₦4 trillion debt refinancing initiative to clear legacy debts owed to 27 power generation companies (GenCos) for electricity supplied from 2015 to 2023.
The plan aims to restore liquidity, boost investor confidence, and ensure a stable power supply across Nigeria.
The ₦4 trillion debt, stemming from unpaid invoices by the Nigeria Bulk Electricity Trading Company (NBET), has triggered a domino effect, including restricted gas supply, reduced power generation, and poor distribution.
The refinancing strategy involves settling verified debts through bonds, treasury instruments, and phased cash payments.
This intervention is expected to ease financial strain on GenCos and gas suppliers, strengthen their balance sheets, and attract new investments.
It will also enable timely payments to gas suppliers, support plant maintenance, and boost generation capacity, ultimately reducing outages and improving productivity.
The Ministry of Power and the Debt Management Office (DMO) will manage disbursements, with rigorous verification and auditing to ensure transparency.
Regular updates will be published to maintain accountability and prevent future debt buildup.
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