Closing The Power Sector Cashflow Gap In Nigeria: Structuring Payment Security and credit enhancement mechanisms

Businessday | 21-05-2026 06:22pm |

Nigeria's power sector is grappling with a significant liquidity crisis, which is attributed primarily to structural weaknesses rather than limitations in capacity. This ongoing financial challenge has prompted discussions on the need for effective payment security and credit enhancement mechanisms to stabilize the sector. Stakeholders are exploring various strategies to address these issues and ensure a more sustainable financial environment for power generation and distribution in the country. The focus remains on creating a robust framework that can support the sector's growth and operational efficiency.

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