Na serious matter dey ground for Nigeria power sector as electricity generation companies (GenCos) still dey wait for payment from Federal Government, even after government issue N501bn bond wey dem promise go settle their debt. The bond wey dem issue for December 2025 don record 100% subscription from investors, but as of March 2026, no single GenCo don collect any payment from the money.
According to report from The PUNCH newspaper, the Federal Government announce Presidential Power Sector Debt Reduction Programme wey dem plan go clear about N4tn wey government owe GenCos for electricity wey dem supply to national grid for the past ten years. The N501bn bond na just part one of the programme, but since January 2026 when five GenCos sign settlement agreement, money no still enter their accounts.
Joy Ogaji, wey be Executive Secretary of Association of Power Generation Companies, confirm say no payment don happen. She talk say “Only five GenCos sign. As of today, I ask one of the assignees, and dem say no payment don receive.” This delay dey cause plenty worry for inside electricity industry as stakeholders bin hope say the bond go quickly solve cash problems wey dey affect operations.
The Special Adviser to President on Energy, Olu Verheijen, bin talk during the bond signing ceremony say the programme go reset electricity market and bring financial stability. She explain say the N501bn bond contain N300bn wey dem raise from capital market and N201bn wey dem allot as bonds to participating GenCos. Verheijen reveal say five generation companies wey operate 14 power plants for Nigeria—First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited—don sign agreements with Nigerian Bulk Electricity Trading Plc.
The total settlement value for these five companies na N827.16bn, wey government promise to pay in four different installments. But as of now, no installment don drop. This delay fit make matters worse for GenCos wey already dey face operational costs, foreign exchange problems, and gas supply issues. Many GenCos don complain say unpaid invoices don weak their financial strength, limit their ability to maintain equipment, and discourage new investors from entering the sector.
The N4tn debt wey dey ground na major problem for Nigeria electricity value chain, affecting not only generation but also transmission and distribution. Under the debt reduction programme, Federal Government promise to clear big portion of the debt through bond issuances and structured payments to improve service delivery. But with this delay, stakeholders dey ask questions about government ability to implement policies wey dem announce.
Efforts to get official response from office of Special Adviser to President on Energy about the delay no yield result as of time wey this report dey write. This development show say structural challenges for Nigeria power sector still dey, even as government dey continue to roll out reforms wey dem aim go make industry better for sustainable growth.
The bond issuance wey happen for Lagos in December 2025 attract strong interest from pension funds, banks, asset managers, and other institutional investors. Government officials bin describe the full subscription as sign of renewed investor confidence in government reform agenda. But now, the delay in disbursement dey raise fresh concerns about liquidity for the fragile power sector.
Industry watchers say the continued non-payment fit further strain GenCos and affect electricity supply to Nigerians. Many GenCos dey rely on these payments to settle their own debts, maintain power plants, and invest in new infrastructure. Without the funds, the entire electricity value chain fit suffer more setbacks.
This situation dey highlight the gap between government announcements and actual implementation for Nigeria power sector. As citizens continue to experience blackouts and unreliable electricity supply, the delay in settling GenCos debts no go help matters. Stakeholders dey call for urgent action to ensure the bond funds reach the intended beneficiaries so the sector fit begin to recover.
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