Federal Government has disbursed N333.12 billion to eight electricity generation companies (GenCos) as part of efforts to clear longstanding debts in Nigeria’s power sector.
Gatekeepers News reports that the payment covers 17 power plants that signed participation agreements under the Presidential Power Sector Financial Reforms Programme (PPSFRP), marking a major step in improving liquidity and restoring confidence in the electricity market.
The Special Adviser to the President on Energy, Olu Verheijen, announced the development on Tuesday during the investor forum for the N729 billion Series II bond issuance in Abuja.
She said the government had fulfilled its payment commitments under the first phase of the programme, noting that the initial Series I bond raised about N501 billion, comprising N300 billion in cash and roughly N201 billion through non-cash bond instruments.
Those funds addressed about 22 per cent of the settlement obligations under executed agreements, while the remaining debts will be covered through the second bond series and future issuances.
According to Verheijen, the government also paid the first Series I bond coupon of about N63.5 billion in full on July 14, 2026, describing the timely payment as evidence of the administration’s commitment to honouring contractual obligations and strengthening investor confidence in the sector.
The latest payment comes as the Federal Government prepares to raise an additional N729 billion through the second tranche of the bond programme to continue settling verified legacy debts owed to power generation companies.
The initiative forms part of the broader Presidential Power Sector Debt Reduction Programme aimed at addressing years of financial obligations, improving cash flow across the electricity value chain and attracting fresh investment into Nigeria’s power industry.
