GenCos Await Payment Despite N501bn Bond Approval

Three months after the Federal Government issued a ₦501bn bond to settle longstanding electricity debts, power generation companies (GenCos) say they have yet to receive any payment.

The bond was part of the Presidential Power Sector Debt Reduction Programme, designed to clear an estimated ₦4tn owed to GenCos for electricity supplied to the national grid over the past decade.

Findings show that five GenCos signed settlement agreements in January 2026, but disbursement has not begun.

The companies include First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited.

Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, confirmed the delay: “Only five GenCos signed. As of today… no payment has been received.”

The bond issuance, executed by NBET Finance Company Plc, was fully subscribed, attracting pension funds, banks, and asset managers. Officials hailed it as proof of investor confidence in reforms.

However, the delay raises concerns about liquidity in Nigeria’s fragile power sector. GenCos argue that unpaid invoices have weakened their balance sheets, limited infrastructure maintenance, and discouraged new investment.

The Special Adviser to the President on Energy, Olu Verheijen, had described the bond as a “decisive reset” combining debt resolution with broader reforms.

The settlement value for the five GenCos stands at ₦827.16bn, to be paid in four instalments.

Industry stakeholders warn that continued delays could worsen operational challenges, including rising costs, forex volatility, and gas supply constraints, underscoring persistent structural issues in Nigeria’s electricity market.