The Federal Government has fulfilled its initial financial commitments under its power sector debt financing strategy, deploying approximately ₦501 billion to address legacy debts owed to electricity generation companies (GenCos) while making its scheduled first bond coupon payment.

Out of this total deployment, ₦333 billion has been successfully disbursed to eight participating GenCos operating 17 power plants during the primary phase of the Presidential Power Sector Debt Reduction Programme.

Speaking at the Nigerian Bulk Electricity Trading Finance Company Plc Series II Bond Issue Investors’ Forum in Abuja, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, confirmed that the government settled the principal repayment and first coupon on time to build market trust.

She emphasized that the administration chose to demonstrate its fiscal discipline by honoring initial commitments to investors prior to seeking additional capital from the market. By converting accumulated, unsustainable liabilities into structured, bankable financial instruments, the government aims to restore investor confidence across the energy value chain.

The successful execution of the Series I multi-instrument issuance has cleared the path for launching a Series II bond valued at ₦729 billion, which will complete the first phase of the broader ₦4 trillion debt reduction program approved by the president.

This structured market-based framework is designed to eliminate verified historical debts, deepen liquidity throughout the Nigerian Electricity Supply Industry, and establish a stable, sustainable financial foundation for electricity generation nationwide.