Peter Uzoho
The federal government has said it is progressing arrangements for a second tranche of about N701 billion to settle part of the power sector’s legacy debt to Generation Companies (Gencos).
This is as the Association of Power Generation Companies (APGC), accused the government of excluding them from the design of the bond programme and forcing terms on member firms.
The Nigerian Bulk Electricity Trading Plc (NBET), confirmed the move in concurrence to an earlier disclosure by the Minister of Power, Joseph Tegbe, who had said that the second tranche would commence in July 2026.
Acting Chief Financial Officer (CFO) of NBET, Emily Yenvel, revealed the progress being made towards the second tranche of about N729 billion, in response to THISDAY’s inquiry about the settlement.
“The federal government is progressing arrangements for the second tranche of approximately N701 billion in line with the presidential approval. The proceeds will be deployed towards eligible beneficiaries in accordance with executed Settlement Agreements and applicable transaction requirements,” Yenvel told THISDAY.
Yenvel said the settlement is being implemented under the Presidential Power Sector Debt Reduction Programme (PPSDRP) through the Presidential Power Sector Debt Reduction Committee (PPSDRC) of which NBET is a member.
She explained that the N501 billion Series I issuance was the first tranche of the approved programme. She added that payments under this tranche were being implemented in accordance with the approved framework, executed settlement agreements and applicable transaction requirements.
She stressed that the payments were phased, adding: “Therefore, comparing a beneficiary’s total verified legacy debt with the amount received under the first tranche does not reflect the overall programme, as verified entitlements are being settled over successive phases.”
The NBET CFO also clarified that the APGC was not part of the settlement negotiations and as it is not a contractual party to the individual Settlement Agreements. Accordingly, she said NBET’s role was limited to implementing the executed agreements with the respective Gencos and the approved implementation framework.
In an earlier interview with THISDAY, Chief Executive Officer of APGC, Dr Joy Ogaji had said the government shut out APGC from the negotiation and even threatened its member-companies to sign a 50 per cent ‘haircut’.
Ogaji stated that APGC has rejected the process, insisting it has been excluded since reconciliation ended in March 2025 and that government through the Special Adviser to the President on Energy, Olu Verheighen was unilaterally auditing invoices without the input of the Nigerian Electricity Regulatory Commission (NERC) and or the Nigerian Independent System Operator (NISO).
She said Gencos last reconciled with NBET in March 2025, when total legacy debt from 2015 to December 2024 was agreed at N4 trillion.
“We have written severally to NBET, copied to the SA on Energy, Minister, anybody that needed to be copied, including finance, that we want our invoices reconciliation every quarter. Is that too hard to ask? If you don’t have anything to hide, why are you avoiding reconciling with somebody you are owing?” Ogaji asked.
She recounted that at a July 25, 2025 meeting with President Bola Tinubu, the president told them that he had approved a N4 trillion bond to deal with the legacy debt. But Ogaji said Gencos were kept in the dark on the structure.
“August, September, October, till December 2025 no news. I was still in the papers shouting, please, we need to be part of this design. You cannot be designing how to pay me behind me. How do you know that what you’re designing will be suitable for me, my lenders, and the gas suppliers? Nobody listened,” she lamented.
The federal government had in December 2025, announced a N501 billion bond, structured as N300 billion cash and N200 billion in bonds.
But Ogaji described the terms as unacceptable. “So, what they want to do is they will give the Gencos N300 billion in cash, and then N200 billion will be in bonds. So, the Gencos will have to look for where to go and sell that bond. You know what will happen. When you take a bond to the bank, they will further discount it. That’s more losses for the Gencos,” she explained.
She added: “The terms for Gencos to access that N300 billion of N501 billion is that they will give up 50 per cent of their invoice. The government calls it a haircut. The Gencos call it a head cut.
“They started threatening Gencos. The EFCC started inviting all the Gencos every week, threatening them. In fact, some of the chairmen were threatened. Eventually, some of them signed. Up till now, some have not signed. They say they’d rather die.”
Ogaji also faulted the audit process. She maintained: “How can one person who doesn’t know anything about Power Purchase Agreements be the one reviewing our invoices? NERC is not involved. NISO is not involved. And just SA on Energy. She’s the one sitting in her office and cooking reconciliation and saying they have done all the audits. Let them publish the audits that reduce our invoices.”
Before the NBET latest disclosure, Minister of Power, Tegbe, had told journalists in Lagos at an industry event, that the second tranche would be issued in July 2026 and that the first N501 billion phase had been fully disbursed.
But with sector debt to Gencos now above N6.8 trillion and rising, the power producers say phased bond payments without quarterly reconciliation, NERC/NISO oversight, and acceptable terms will not end the illiquidity choking the sector.