The Federal Government says it has paid N333 billion to eight electricity generation companies under the first phase of its power sector debt settlement programme.
Special Adviser to the President on Energy, Olu Verheijen, said on Tuesday that the government deployed about N501 billion under the first tranche of the programme, comprising N300 billion in cash and N201 billion in non-cash bond instruments.
Speaking at the NBET Finance Company Plc Series II Bond Issue Investors' Forum in Abuja, Verheijen said the funds settled about 22% of verified legacy debts owed to generation companies covering 17 power plants.
She added that the government also paid the first bond coupon of about N63.5 billion on July 14 as scheduled, saying the move had strengthened investor confidence in Nigeria's electricity market.
According to Verheijen, the government plans to raise about N729 billion through a second bond issuance to continue settling outstanding debts and improve liquidity across the power sector.
Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, Johnson Akinnawo, said the success of the first bond showed that Nigeria's power sector debt instruments could attract investor confidence and support reforms.
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