Nigeria: Tinubu Says Debt Settlement Has Restored Confidence in Power Sector

What the report says

President Bola Tinubu said the payment of legacy debts in Nigeria’s power sector is helping rebuild trust among market players and lay the groundwork for a more stable electricity market. The remarks were reported by Leadership and circulated by AllAfrica, with Tinubu linking the effort to the work of the Nigeria Bulk Electricity Trading Plc (NBET) and its managing director, Akin Odeyemi.

According to the report, Tinubu said a Series 2 bond issuance worth N728.979 billion formed part of the wider N4 trillion Power Sector Multi-Instrument Issuance Programme. He said the proceeds enabled NBET to settle Generation Companies and the gas suppliers connected to them, addressing long-running and disputed obligations that had strained confidence across the electricity value chain.

The president framed the debt clearance as more than a routine financial transaction, describing it as a confidence-building step for a sector affected by liquidity pressure, unpaid receivables and weak trust. The report says the settlement was achieved through engagement, financial discipline and collaboration among stakeholders.

If sustained, the move could improve cash flow for power producers and gas suppliers and support operations and fuel procurement. Its longer-term significance will depend on whether the institutions involved can keep payments current and avoid a return of arrears.