The Federal Government has approved a ₦4 trillion debt refinancing plan for the electricity sector to address legacy debts owed to 27 power generation companies (GenCos) for energy supplied between 2015 and 2023.
The intervention is aimed at restoring liquidity in the power value chain, boosting investor confidence, and ensuring stable electricity supply nationwide.
Debts estimated at ₦4 trillion, accumulated from unpaid invoices by the Nigeria Bulk Electricity Trading Company (NBET), created a chain reaction of withheld gas supply, reduced generation capacity, and poor distribution performance.
Under the refinancing plan, the government will restructure and settle verified debts through bonds, treasury instruments, and phased cash payments.
The move is expected to provide relief to GenCos and gas suppliers, strengthen balance sheets, and attract fresh capital inflows.
The plan will also enable GenCos to pay gas suppliers promptly, maintain plants, and expand generation capacity, thereby improving supply to distribution companies (DisCos). Over time, it is projected to reduce outages and enhance productivity.
The Ministry of Power and the Debt Management Office (DMO) will oversee disbursements, with strict verification and auditing measures to ensure only validated debts are refinanced. Periodic updates will also be published to maintain transparency and prevent future debt accumulation.
Source: X | PBATSignal2
