Savannah Energy says the Federal Government’s recent N590bn bond issuance to clear part of Nigeria’s electricity market debts has raised hopes of better payment flows to gas suppliers in the power sector.

The British independent energy firm disclosed this in its operational and financial update for the 11 months ended November 30, 2025, noting that the move has renewed optimism over the recovery of long-outstanding receivables owed by power generation companies.

It added that the Federal Government has approved a $2.6bn financing package to support firms across the electricity value chain in settling verified invoices due to power generators 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.”

Savannah highlighted that a significant milestone was achieved in the fourth quarter with the successful issuance of a sovereign bond, marking the start of the debt settlement process.

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.”

The company said this development has positively influenced discussions between its Nigerian gas subsidiary, Accugas Limited, and power sector offtakers on the repayment of outstanding gas obligations.

“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 raised concerns over delayed payments in Nigeria’s power sector, which industry players say have limited investment in gas infrastructure and put fuel supply to power plants at risk.

Some gas companies even threatened to cut off supply to power generation firms if the debts owed by the Gencos were not settled.

Savannah disclosed that its trade receivables totaled $506.9m as of November 30, 2025, marking a 5.9% increase compared with the end of 2024.

The company noted that these receivables primarily stem from gas sales under various supply agreements in Nigeria.