British energy firm Savannah Energy has hailed the Federal Government’s N590 billion sovereign bond issuance as a game-changer, reviving optimism for faster settlement of long-standing debts owed to gas suppliers in Nigeria’s power sector.
Okay News reports that the bond forms the first tranche of a broader N4 trillion programme aimed at clearing verified legacy invoices to power generation companies (Gencos) and gas suppliers.
The intervention stems from President Bola Ahmed Tinubu‘s approval of a $2.6 billion financing package to bolster liquidity across the electricity value chain.
Savannah highlighted supportive statements from government officials throughout 2025, emphasising commitments to resolve payment bottlenecks.
The Q4 2025 bond launch has injected renewed momentum into repayment discussions between Savannah’s Nigerian subsidiary, Accugas Limited (80 per cent owned), and its Genco offtakers.
Gas suppliers have repeatedly raised alarms over delayed payments, warning of potential supply disruptions that could cripple power plants and exacerbate electricity shortages.
As of November 30, 2025, Savannah’s trade receivables stood at $506.9 million—a 5.9 per cent improvement from year-end 2024—largely tied to domestic gas sales.
The company pledged to prioritise cash collections from the Nigerian market in 2026 amid accelerating power sector reforms.
Savannah remains actively engaged with stakeholders, expressing confidence that the bond programme will ease liquidity strains and support sustained gas-to-power supply.
The development addresses chronic challenges constraining investment in gas infrastructure and threatening reliable electricity generation nationwide.
