Three months after the Federal Government issued a N501bn bond to address longstanding electricity debts, power generation companies (GenCos) are yet to receive any payment, raising fresh concerns about liquidity in Nigeria’s fragile power sector.
The development comes despite the rollout of the Presidential Power Sector Debt Reduction Programme, an initiative aimed at clearing about N4tn owed to GenCos for electricity supplied to the national grid over the past decade.
Although five generation companies had signed settlement agreements under the programme in January 2026, disbursement of funds had not commenced as of Sunday.
Confirming the delay, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, said industry players were still waiting for actual payments.
“Only five GenCos signed. As of today, I asked one of the assignees, and they said no payment has been received,” she stated, highlighting growing anxiety within the Nigerian Electricity Supply Industry.
The Federal Government had issued the bond in December in Lagos as part of efforts to restore financial stability to the sector. The bond, which recorded full subscription, attracted significant interest from pension funds, banks, and other institutional investors, signaling renewed confidence in the reform agenda.
At the time, the Special Adviser to the President on Energy, Olu Verheijen, described the initiative as a major step toward resetting the electricity market through debt resolution and structural reforms.
The Series 1 Power Sector Bond, executed by NBET Finance Company Plc, raised N300bn from the capital market, while N201bn was allocated in bonds to participating GenCos.
According to Verheijen, the programme covers verified receivables for electricity supplied between February 2015 and March 2025, with payments structured through negotiated agreements.
The five companies that have signed agreements with Nigerian Bulk Electricity Trading Plc include First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited.
The total negotiated settlement for the five firms stands at N827.16bn, to be paid in four phases.
However, the delay in disbursement is now raising concerns about the pace of implementation and the government’s ability to translate policy commitments into tangible relief for operators.
Industry stakeholders warn that the continued delay could further strain GenCos, many of which are already grappling with rising operational costs, foreign exchange volatility, and persistent gas supply constraints.
The mounting N4tn debt—largely driven by tariff shortfalls and inefficiencies in the electricity market—has weakened the financial health of generation companies, limited infrastructure maintenance, and discouraged new investments.
Despite the government’s pledge to resolve the debt through bond issuances and structured payments, the latest development underscores the deep-rooted structural challenges facing Nigeria’s power sector.
Efforts to obtain an official response from the presidency on the delay were unsuccessful as of the time of filing this report.
