The Federal Government has approved a ₦4 trillion debt refinancing plan to settle legacy debts owed to 27 power generation companies (GenCos) for electricity supplied between 2015 and 2023.
The intervention is designed to restore liquidity in the power sector, boost investor confidence, and stabilise electricity supply across the country.
The debts, estimated at ₦4 trillion, arose from unpaid invoices by the Nigeria Bulk Electricity Trading Company (NBET). The backlog triggered a chain reaction of withheld gas supply, reduced generation capacity, and weak performance by distribution companies (DisCos).
Under the refinancing arrangement, the government will restructure and clear verified debts through a mix of bonds, treasury instruments, and phased cash payments.
Officials say the plan will provide relief to GenCos and gas suppliers, strengthen balance sheets, and attract fresh capital into the sector. It will also enable prompt payments to gas suppliers, improved plant maintenance, and expanded generation capacity, ultimately reducing outages and supporting economic productivity.
The Ministry of Power and the Debt Management Office (DMO) will manage the disbursements, with strict verification and auditing measures in place. Periodic updates will be published to ensure transparency and prevent a repeat of debt accumulation.
