Savannah Energy has stated that the Federal Government’s recent N590bn bond issuance to settle part of the outstanding electricity market debts has revived hopes of improved payments to gas suppliers operating in Nigeria’s power sector.
The British independent energy company made this known in its operational and financial update for the 11 months ended November 30, 2025, noting that the intervention had created renewed optimism around the recovery of long-outstanding receivables owed by power generation companies.
According to Savannah, the Federal Government approved a $2.6bn financing package aimed at assisting companies in the electricity value chain to settle verified invoices owed to power generation companies and gas suppliers.
The company stated, “The company notes the supportive public statements made by various officials of the Government of Nigeria during 2025 regarding the Nigerian electricity sector, stating that His Excellency President Bola Tinubu has approved a $2.6bn financing package to assist companies operating within the power industry in settling outstanding verified invoices to power generation companies and subsequently to gas supply companies.”
It added that a major milestone was achieved in the fourth quarter of the year with the successful issuance of a sovereign bond to kick-start the settlement process.
In its words, the firm said, “The government successfully launched a N590bn first tranche bond issuance in Q4 2025 as part of a wider N4tn bond programme to settle verified legacy invoices owed to Gencos and gas suppliers.”
Savannah said the development had positively impacted discussions between its Nigerian gas subsidiary, Accugas Limited, and the power sector offtakers over the repayment of outstanding gas debts.
“This has created renewed positive momentum in the discussions Accugas Ltd, an 80 per cent Savannah-owned subsidiary, is having with its offtakers, which are Gencos, around the repayment of the company’s outstanding receivables balance in an accelerated manner,” the company stated.
Gas suppliers have long complained about payment delays in Nigeria’s power sector, which industry operators say have constrained investment in gas infrastructure and threatened supply to power plants.
There were threats from gas companies that they might shut off gas supply to power generation companies unless the debts owed by the Gencos were paid.
Savannah disclosed that as of November 30, 2025, its trade receivables balance stood at $506.9m, representing a 5.9 per cent improvement compared with the position at the end of 2024.
The company said the receivables largely relate to gas sales under various supply agreements in Nigeria.
It noted that improving cash collections from the domestic gas market would remain a key focus in 2026, particularly as reforms in the power sector continue to gather momentum.
Savannah added that it remains engaged with stakeholders in the Nigerian electricity market, expressing optimism that the bond programme would help ease liquidity pressures across the gas-to-power value chain.
