NBET Settles Legacy Debt to GenCos

The Nigerian Bulk Electricity Trading (NBET) has officially commenced the settlement of N729 billion in legacy debt payments to GenCos, marking a pivotal moment in the country's power sector reform. This significant milestone was described by Mr Odeyemi as a crucial step in implementing the debt reduction programme under President Bola Tinubu's administration. The company stated that the payments follow the successful issuance and signing of N728.979 billion Series 2 bonds under the N4 trillion Power Sector Multi-Instrument Issuance Programme. The settlement comprises N402 billion in cash bonds and N326.979 billion in non-cash bonds, in line with the approved settlement framework. Beyond addressing legacy obligations, this development provides a pathway for the Nigerian electricity market to progressively transition toward a more sustainable market cash-flow framework. The transition would be characterised by improved payment discipline, stronger liquidity, and greater commercial certainty to support continued investment across the value chain.

The narrative highlights the strategic importance of this financial restructuring for the Nigerian energy sector. By resolving the outstanding legacy debts, NBET aims to enhance commercial certainty and improve payment discipline, which are essential for sustaining long-term investment in the value chain. The company emphasized that the transition will be characterised by stronger liquidity and greater commercial certainty to support continued investment across the value chain. This approach ensures that the Nigerian electricity market can progress toward a more sustainable cash-flow framework without the need for immediate debt restructuring.