NBET pays N729 bn of N4trn debt owed GenCos

From Isaac Anumihe, Abuja

Nigerian Bulk Electricity Trading (NBET) has commenced the settlement of participating generation companies (GenCos) and their associated gas companies following the successful issuance and signing of the ₦728.979 billion Series 2 Bonds under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.

In a statement, the Managing Director of NBET, Akin Odeyemi, said that this milestone represents a significant step in the implementation of the Presidential Power Sector Debt Reduction Programme, (PPSDR) under the leadership of President Bola Ahmed Tinubu, and in furtherance of the objectives of the Renewed Hope Agenda.

The settlement, NBET, noted, is being undertaken through a combination of ₦402,000,000,000.00 in cash bonds and ₦326,979,000,000.00 in non-cash bonds, in accordance with the approved settlement framework.

The ongoing settlement, he said , marks a major step towards addressing historical obligations, restoring liquidity across the electricity value chain, and strengthening the financial position of power sector participants.

“Beyond addressing legacy obligations, this development provides a pathway for the Nigerian electricity market to progressively transition towards a more sustainable market cash-flow framework, characterised by improved payment discipline, stronger liquidity and greater commercial certainty to support continued investment across the value chain. A more financially stable generation segment is also expected to strengthen the capacity of GenCos to sustain and improve their generation assets, support increased electricity generation, and contribute to greater reliability across the Nigerian electricity market” he said

According to him, this milestone demonstrates the Federal Government’s commitment, under the leadership of Tinubu, to resolving longstanding legacy obligations while laying the foundation for a financially- sustainable, commercially viable and investment-driven electricity market.

“The current focus of NBET is on preparatory activities towards the commencement of the second phase of the programme, as we continue to advance the objectives of the ₦4 trillion Power Sector Multi-Instrument Issuance Programme” Akin, noted. ENDS

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