The Federal Government has raised N728.9 billion through the second phase of its bond programme aimed at settling verified legacy debts owed to electricity generation companies and improving liquidity across Nigeria’s power sector.
The latest transaction, known as Series 2, brings the total amount raised under the debt reduction programme to about N1.23 trillion, following the N501 billion secured through the first series in January 2026.
The Series 2 issuance consists of N402 billion in cash bonds raised through the domestic capital market and another N326.9 billion in non-cash bonds allocated to participating Generation Companies, known as GenCos.
Speaking during the transaction ceremony in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the intervention was designed to address accumulated obligations that had weakened liquidity and reduced investment across the electricity value chain.
According to Oyedele, resolving the verified debts through a structured and transparent process is necessary to restore confidence among participants in the electricity market.
He, however, stressed that the bond programme alone would not be enough to permanently address the sector’s financial problems.
The minister called for stronger market discipline, improved revenue collection, reduced technical and commercial losses, greater efficiency and enhanced accountability across the electricity industry.
11 Generation Companies Participate
The Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc, Akin Odeyemi, said 11 GenCos participated in the Series 2 issuance, compared with eight companies involved in the first series.
He said the wider participation reflected increased confidence among stakeholders in the Federal Government’s framework for settling verified outstanding obligations.
Odeyemi explained that the latest issuance would be implemented through two tranches, designated Tranches A and B.
He said the accumulation of unpaid obligations had affected the ability of companies across the electricity value chain to meet their own financial commitments and had limited the capacity of GenCos to invest in additional generation.
The NBET chief said the debt reduction programme should therefore be viewed not simply as a mechanism for settling historical liabilities, but as part of a broader effort to restore financial sustainability and liquidity to the Nigerian Electricity Supply Industry.
FG Targets Long-Term Power Sector Stability
The intervention forms part of the Federal Government’s broader Power Sector Debt Reduction Programme, which targets approximately N4 trillion in verified legacy obligations.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, said the first series had established the framework for the programme, while the second series was intended to expand its implementation.
She disclosed that settlement agreements under the programme cover 11 GenCos representing 21 power plants.
Verheijen said resolving the accumulated debts was important to restoring confidence and encouraging further investment in the electricity sector.
Meanwhile, the Minister of Power, Joseph Tegbe, said the latest bond issuance demonstrated the Federal Government’s commitment to tackling the structural financial challenges affecting Nigeria’s electricity industry.
Represented at the event by the ministry’s Permanent Secretary, Mahmuda Mamman, Tegbe said the intervention was part of wider efforts to establish a more financially stable electricity market and improve power supply.
The Federal Government has maintained that the ultimate objective of the debt reduction programme is not merely to settle old obligations, but to create a more sustainable electricity market capable of attracting investment and supporting more reliable power generation for households and businesses.
