Connect with us

Business

FG begins N4tn debt settlement, captures five GenCos

Published

on

The Federal Government has taken steps towards resolving Nigeria’s estimated N4tn power sector debt burden as five power generation companies signed settlement agreements under the Presidential Power Sector Debt Reduction Programme, following the issuance of a N501bn bond.

The bond, which reportedly recorded 100 per cent subscription, was issued in Lagos on Tuesday, attracting interest from pension funds, banks, asset managers, and other institutional investors, signalling renewed confidence in the government’s electricity market reforms and its approach to resolving legacy sector challenges.

The programme, driven by President Bola Tinubu, is designed to address payment arrears owed to power generation companies for electricity supplied over the past decade. The PUNCH reports that the legacy debts had constrained liquidity, weakened balance sheets, and discouraged investment across the Nigerian Electricity Supply Industry.

Speaking at the signing ceremony, the Managing Director of the Nigeria Bulk Electricity Trading Plc, Johnson Akinnawo, described the programme as a historic and defining moment for Nigeria’s power sector.

Nigerian Bulk Electricity Trading Company

“This historic programme received the resolute approval of President Bola Tinubu and the Federal Executive Council. Mr President’s decisive endorsement is not just a procedural step; it is the bedrock of this ambition. It signals the highest level of commitment to the total revitalisation of our nation’s power sector,” Akinnawo said.

He added that the development would strengthen market discipline while enabling growth across generations and other segments of the electricity value chain.

Akinnawo stressed the broader significance of reliable electricity for national development, saying, “Reliable electricity is not just an enabler of economic activity. It is the backbone of national development, social advancement, and global competitiveness.”

See also  Recapitalisation hurdle: Pension firms hunt for N277bn lifeline

The Special Adviser to the President on Energy, Olu Verheijen, said the bond issuance marked a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms aimed at restoring confidence and long-term financial sustainability to the sector.

She explained that the inaugural Series 1 Power Sector Bond issuance, executed by NBET Finance Company Plc, closed at N501bn, comprising N300bn raised from the capital market and N201bn allotted in bonds to participating power generation companies.

Verheijen said under the programme, verified receivables for electricity supplied between February 2015 and March 2025 were being settled through negotiated agreements with power generation companies.

She disclosed that five generation companies operating 14 power plants nationwide—First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and the Niger Delta Power Holding Company Limited—have executed settlement agreements with the Nigerian Bulk Electricity Trading Plc.

According to her, the total negotiated settlement value for the five companies stands at N827.16bn and will be paid in four phased instalments.

Proceeds from the Series 1 bond issuance will fund the first and second instalment payments, estimated at N421.42bn, representing about 50 per cent of the total settlement amount, with payments for the initial phase to be made through a combination of cash and notes.

Industry operators said clearing the historic arrears is expected to improve liquidity for power generation companies, strengthen their ability to meet operating and debt obligations, and unlock new investments across the electricity value chain.

The Group Managing Director of Sahara Power Group, Kola Adesina, said the resolution of legacy debts would restore confidence and enable power producers to reinvest.

See also  Shell, banks launch $3bn financing for oil contractors

“Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made. Because we were owed so much, it was a bit of a problem for us to put in more money. But last year we took the bull by the horns, based on President Bola Tinubu’s commitment to resolving the legacy issues, and I can say that once this process is over, construction will commence immediately on the second phase of our Egbin Power Plant. On behalf of the generation companies, I’d like to thank the President for this resolution,” Adesina said.

Verheijen added that, when fully implemented, the programme is expected to impact 4,483.60 megawatt-hours per hour of electricity generation capacity and finalise settlement of payments for about 290,644.84 gigawatt-hours of electricity billed since February 2015.

She said the initiative would provide a strong foundation for new investments in capacity enhancement and expansion by power generation companies serving over 12.03 million active registered electricity customers nationwide, while reinforcing fiscal discipline through validated claims, negotiated settlements, and transparent capital market financing.

The Special Adviser said the Federal Government acknowledged the support of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Power, Adebayo Adelabu, as well as members of the Presidential Power Sector Debt Reduction Committee.

She also acknowledged the roles played by key government institutions, including the Debt Management Office, the Central Bank of Nigeria, the National Pensions Commission, and the Nigerian Revenue Service, in facilitating the bond issuance.

See also  NNPC ran refineries at monumental loss — Ojulari

CardinalStone Partners Limited acted as lead financial adviser and lead issuing house on the transaction, leading a consortium of professional parties, while the Nigerian Bulk Electricity Trading Plc served as transaction sponsor, with the Office of the Special Adviser on Energy leading settlement negotiations and engagements with the generation companies.

The Minister of Finance, Wale Edun, represented by the Director-General of the Debt Management Office, Patience Oniha, described the signing as more than a financing transaction, calling it a “critical turning point” for Nigeria’s power sector.

“I am pleased to be here today to witness and formally commemorate the signing of the N501.02bn Series 1 Bonds under the N4tn Power Sector Multi-Instrument Issuance Programme. This ceremony represents far more than a financing transaction. It marks a critical turning point in our collective efforts to address long-standing structural challenges in Nigeria’s power sector and to lay a stronger foundation for its long-term sustainability,” he said.

Edun added that the bond issuance signals the Federal Government’s commitment to honouring its obligations, deploying innovative financial solutions to resolve systemic challenges, and restoring liquidity, confidence, and discipline across the electricity market.

He emphasised that settling legacy debts in a structured manner would enable GenCos to stabilise operations, improve maintenance, and attract new investment—critical to improving power supply nationwide.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Fuel Subsidy Is The Biggest Scam – Donald Duke

Published

on

Former governor of Cross River State, Donald Duke has described fuel subsidy as the biggest scam.

It was reports that Duke made the claim in a recent interview.

The Peoples Redemption Party (PRP) presidential candidate argued that Nigeria’s crude oil resources could support significantly lower domestic fuel prices if properly managed.

“Look, I don’t believe there’s any subsidy in fuel.

“For a barrel of crude oil, there are about seven by-products. The two consequential ones are diesel and petrol, PMS and AGO, and kerosene, aviation fuel and all those things.

“You sell them at commercial rates, okay? Work it out. You can almost sell petrol today at ₦200 a litre, not the ₦1,000-plus.

“So that thing about subsidy, I think, is the biggest scam that has been perpetrated, maybe globally,” Duke said.

The former governor also described Nigeria as an energy-rich country that has failed to translate its vast resources into affordable and reliable energy for its citizens.

“You’re an energy-blessed country. You have all known forms of energy existing in Nigeria, from the crudest, which is human labour, to hydrocarbons, solar, hydro, uranium and now lithium.

“You have all those things. Why are we still energy-poor? Because the political will is not there. But even beyond the political will, we’re not thinking through this,” Duke said.

Duke said the continued flaring of natural gas, despite the country’s energy challenges, was another indication of what he described as poor management of Nigeria’s resources.

“We easily flare two billion cubic feet of gas a day. That is equivalent to 20 million litres of diesel.

See also  Shell, banks launch $3bn financing for oil contractors

“If you had a turbine to power all of Africa, it would not consume 20 million litres of diesel daily.

“So, it’s akin to the abundance of water while the fish is thirsty,” he said.

He also rejected arguments that domestic fuel prices should be benchmarked against international prices, saying countries should leverage their natural resources to improve the welfare of their citizens.

“When I hear excuses like, ‘Oh, it’s cheaper in America,’ or, ‘We’re cheaper than it is in America,’ every country has its own endowments.

“You’ve got to use what you’ve got to get what you want. We are an energy-blessed country. The people should feel their blessings,” he said.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Whatsapp to begin charging businesses per message from October 1

Published

on

Meta, the parent company of WhatsApp, will begin charging businesses for certain messages sent through the WhatsApp Business Platform from October 1, 2026.

This was disclosed in a WhatsApp Business Platform pricing update in July 2026.

The new charges will be applied to companies using the official WhatsApp Business Platform, formerly known as the WhatsApp Business API, to manage customer conversations at scale.

Banks, fintechs, e-commerce companies, telecoms operators, logistics firms and large retailers that rely on the platform for customer service and transactional communication are among those that could be affected.

However, the development will not affect ordinary WhatsApp users or most small businesses using the standard WhatsApp Business app on their phones.

Under the current system, when a customer sends a message to a business, a 24-hour customer service window opens. During that period, businesses can respond with free-form service messages and certain utility messages without paying Meta.

However, from October 1, Meta will begin charging businesses on a per-message basis for service messages sent during the customer service window.

Meta, in its developer documentation, said, “Effective October 1, 2026, Meta will charge on a per-message basis for all service messages, consistent with how Meta charges for template messages. These messages have not been charged since November 1, 2024.”

The company added, “Effective October 1, 2026, Meta will charge on a per-message basis for utility messages sent in response to users (within an open 24-hour customer service window). These messages have not been charged since July 1, 2025.”

Utility messages include communications such as payment confirmations, order updates and delivery notifications.

See also  Nigerians lose millions in dashed Umrah dreams due to US-Iran war

Meta also warned businesses and Solution Providers about the need to add a payment method ahead of the new charges.

It said, “For any Solution Provider or directly-integrated businesses that does not have a payment method on file by September 30, 2026, Meta will stop delivering service messages as of when they become charged on October 1, 2026.”

For Nigerian businesses, a chargeable utility or service message is expected to cost about $0.0101 per message, equivalent to roughly ₦14 based on an exchange rate of about ₦1,340 to the dollar.

Marketing messages are considerably more expensive, at about $0.062 per message, or approximately ₦84 at the same exchange rate.

The charges are Meta’s fees and do not necessarily represent the total amount a business will pay. Companies using Business Solution Providers or third-party platforms to access the WhatsApp Business Platform may incur additional provider charges.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

FG reaffirms partnership with Taraba to unlock economic potential

Published

on

The Federal Government has reaffirmed its commitment to working with the Taraba State Government to unlock the state’s vast potential in agriculture, energy, tourism, infrastructure and mineral resources.

The Minister of Information and National Orientation, Mohammed Idris, stated this on Thursday in Jalingo at the Gala night to mark the Taraba State’s 35th anniversary and the official unveiling of the Taraba Regional Development Master Plan.

He described the newly unveiled Taraba Regional Development Master Plan as an important blueprint for sustainable growth.

Idris, who conveyed the greetings of President Bola Tinubu and the Federal Executive Council to the government and people of Taraba State, said the state’s 35th anniversary offered an opportunity not only to celebrate its progress since creation in 1991, but also to define a clear pathway for its future.

He commended Governor Agbu Kefas of Taraba for adopting a long-term development framework, saying the success of the Master Plan would ultimately depend on sustained implementation and its impact on the lives of citizens.

“The success of this Master Plan will not be measured by the ceremony at which it is unveiled, but by the roads built, businesses created, jobs generated, communities connected and lives improved,” the minister said.

Idris described Taraba as one of Nigeria’s most promising economic frontiers, with enormous opportunities in agriculture and agro-processing, livestock, hydropower, tourism, manufacturing and mineral development.

He praised the Kefas Administration for its investments in education, healthcare, infrastructure, security and economic development, particularly its policy of free and compulsory primary and secondary education.

He said the evidence was in the provision of more than N1.8 billion in 2026 to cover NECO, BECE and NABTEB examination registration for public-school students.

See also  Petrol may hit N1,000/litre as Dangote hikes price

The minister also highlighted the approximately 268 million dollars financing agreements signed between Taraba State and the ECOWAS Bank for Investment and Development for an integrated industrial park, 10,000 hectares of irrigated rice production and processing, and a 50-megawatt solar power plant in Jalingo.

He said the investments represented the kind of initiatives required to convert the state’s natural advantages into production, value addition, employment and sustainable economic growth.

Idris said Tinubu’s administration was complementing the state’s development drive through major federal infrastructure projects.

“These include the Gembu–Mbamnga–Yang (Lip) Road, the Bali–Serti–Gashaka–Gembu Road, interventions on the Jalingo–Mutum Biyu–Tella–Wukari corridor, as well as further work on the Mayo Selbe–Gembu, Mutum Biyu–Garba Chede and Jalingo–Numan roads.

“These are more than roads. They are investments in connectivity, trade, tourism, agriculture, security and the movement of people and goods,” he said.

The minister also reaffirmed the federal government’s commitment to harnessing Taraba’s agricultural, energy and mineral potential, including the strategic Mambilla Hydroelectric Power Project.

On security, Idris said the federal government was advancing reforms toward the establishment of State Police to bring policing closer to communities while ensuring professionalism, accountability and safeguards against abuse.

He said such a framework could be particularly beneficial to Taraba because of its vast terrain and dispersed border communities, where local knowledge, intelligence gathering and rapid response were critical to effective policing.

The minister also cited the establishment of the Nigerian Army’s 10 Division, headquartered in Jalingo, with operational responsibility for Taraba and Adamawa States, as evidence of the federal government’s commitment to strengthening security in the region.

“Security and development must go together. People cannot invest, farmers cannot move their produce, tourists cannot visit and businesses cannot grow where communities feel unsafe,” Idris said.

See also  2027 poll spending may trigger inflation, MPC warns

He said the federal government’s economic reforms were designed to create a stronger fiscal foundation for development, noting that the removal of petrol subsidy had mobilised N15.8 trillion in additional resources for the Federation between June 2023 and December 2025.

According to him, approximately N5.4 trillion accrued to the federal government while about N10.4 trillion went to states and local governments, providing additional resources for infrastructure, education, healthcare, security and human capital development.

Idris said the federal government remained opposed to a return to the previous subsidy regime, stressing that the priority was to consolidate the gains of reform, protect vulnerable Nigerians and ensure that additional public resources translated into tangible improvements in citizens’ lives.

He emphasised that development must ultimately be people-centred, creating opportunities for young people, expanding women’s economic participation, supporting farmers and small businesses, and connecting communities to markets and public services.

The minister also pledged stronger collaboration between the Federal Ministry of Information and National Orientation and the Taraba State Ministry of Information and Re-Orientation to ensure citizens understand and embrace the objectives of the Master Plan.

“The vision contained in this Master Plan must go beyond government offices. It must reach the farmer, the entrepreneur, the student, the trader and communities across Taraba.

“This is because a plan for Taraba must ultimately be a plan owned by the people of Taraba,” he said.

Idris congratulated Kefas, the government, and the people of Taraba State on the state’s 35th anniversary, describing the occasion as both a celebration of Taraba’s history and a renewed commitment to its future.

See also  NNPC ran refineries at monumental loss — Ojulari

“35 years of history. A new blueprint for the future. And a renewed commitment to building the Taraba we want and the Nigeria we deserve,” the minister said.

In his remarks, Kefas also called for continuity in governance, acknowledging the contributions of former military administrators and elected governors to Taraba State’s development.

He said his administration was committed to building on previous achievements, correcting what needed to be corrected, completing worthy projects and opening new frontiers for future generations.

He stressed that the development of Taraba must remain bigger than any government, political party, ethnic group or individual, urging former leaders to continue contributing their experience and institutional knowledge to the peace, unity and prosperity of the state.

“Government must be a continuum. Development must be cumulative. Taraba is bigger than any government, any administration, any political party, any ethnic group, or any individual,” Kefas said.

He added that the ultimate credit for development belongs to the people of Taraba State.

Present at the event were the former Governor of Taraba State, Rev. Jolly Nyame; Secretary to the Government of Taraba State, Chief G.T. Kataps; Director-General of the Nigerian Television Authority, Salihu Dembos; and  Director-General of the Federal Radio Corporation of Nigeria, Dr Mohammed Bulama.

Others were the Managing Director of the Nigerian Ports Authority, Dr Abubakar Dantsoho; as well as other distinguished government officials, traditional leaders, members of the diplomatic and business communities, and other dignitaries.

NAN

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending