The Federal Government on Tuesday said it had fulfilled all commitments under the first tranche of its power sector debt financing programme, disclosing that it deployed about N501bn to settle part of the long-standing legacy debts owed to electricity generation companies and paid the first bond coupon on schedule.
It disclosed that N333bn had so far been paid to eight participating GenCos covering 17 power plants under the first phase of the power sector debt settlement programme.
The government said the successful execution of Series I of the Power Sector Multi-Instrument Issuance Programme had restored investor confidence in Nigeria’s electricity market and laid the foundation for the launch of a N729bn Series II bond to deepen liquidity across the power value chain.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this on Tuesday at the NBET Finance Company Plc Series II Bond Issue Investors’ Forum held in Abuja.
According to her, the Tinubu administration deliberately chose to demonstrate credibility by honouring every obligation made to investors before returning to the capital market for another round of fundraising.
She said, “Every successful capital market tells the same story. Investors return where governments keep their promises. And today’s lecture is exactly about that. President Bola Tinubu’s administration has demonstrated, beyond doubt, its commitment to making a clean break from the fiscal dysfunction that once defined Nigeria’s power sector.
“Through bold policy decisions and disciplined execution, we are converting an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust.”
