Three months after the Federal Government issued a N501 billion bond to begin settling longstanding electricity debts, power generation companies (GenCos) are yet to receive any funds, sparking renewed worries about liquidity challenges in Nigeria’s struggling power sector.
The delay persists despite the launch of the Presidential Power Sector Debt Reduction Programme, designed to address an estimated N4 trillion owed to GenCos for electricity supplied to the national grid over the past decade.
Investigations by The PUNCH revealed that while five generation companies signed settlement agreements under the programme in January 2026, no disbursements had been made to the beneficiaries as of Sunday.
These five GenCos form part of more than 20 power generation firms operating in Nigeria’s electricity market.
The non-payment has heightened concerns among industry stakeholders, who argue that the continued liquidity crunch could further undermine generation capacity, discourage investment, and jeopardise efforts to improve power supply reliability across the country.
The bond issuance was widely seen as a critical first step toward restoring financial health to the sector, enabling GenCos to service debts, procure gas, maintain equipment, and expand operations.
Industry observers say the prolonged delay risks eroding confidence in government-led interventions and could exacerbate operational difficulties for power producers already grappling with high input costs and inconsistent remittances from distribution companies.
As the power sector remains a major bottleneck to Nigeria’s economic growth, stakeholders are calling for urgent clarification from relevant authorities on the timeline for fund disbursement and the resolution of any outstanding procedural or administrative hurdles.
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