The Federal Government has secured N728.9 billion through a new bond issuance to clear outstanding obligations to electricity generation companies, or GenCos, as part of a wider N4 trillion sector debt overhang. The latest transaction follows N501 billion raised in the bond market in January 2026, taking total funds mobilised under the programme to N1.23 trillion.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele, along with Akinola Odeyemi, chief executive of Nigerian Bulk Electricity Trading Plc (NBET), confirmed the development in separate statements on Friday.
Oyedele said the second series consists of N402 billion in cash-backed bonds sold through the capital markets and N326.9 billion in non-cash instruments allocated to participating generation companies under the Presidential Power Sector Debt Reduction Programme.
He said the bond initiative would not be sufficient on its own, arguing that it must be supported by tighter market discipline, stronger revenue collection, lower technical and commercial losses, and improved efficiency and accountability throughout the electricity value chain. He also stressed the importance of making greater use of Nigeria’s domestic capital markets.
Odeyemi put the total value of the Series 2 issuance at about N729 billion, saying it would be executed through two portions, Tranche A and Tranche B.
He described the broader participation in the issuance as encouraging, saying it showed rising stakeholder confidence in the programme and its capacity to create a dependable mechanism for resolving verified unpaid obligations within the power sector.
Odeyemi added that the debt-reduction initiative should be understood as more than a way to pay off old liabilities. In his view, it is also intended to rebuild financial trust, improve liquidity and establish a more sustainable electricity supply industry in Nigeria.
In June, GenCos represented by the Association of Power Generation Companies had warned that the Federal Government had still not settled its legacy debts.
