The Federal Government has raised N728.9 billion through a second series of bonds as part of efforts to settle the approximately N4 trillion legacy debt owed to electricity Generation Companies, GENCOs.
The development was announced in Abuja during the launch of Series-2 of the Presidential Power Sector Debt Reduction Programme.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the latest issuance comprises N402 billion in cash bonds and N326.9 billion in non-cash bonds allocated to participating GENCOs.
With the latest issuance, the total value of bonds raised under the programme has reached N1.23 trillion.
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Oyedele said the initiative was designed to address accumulated legacy obligations that have weakened liquidity in the electricity market, constrained investment and undermined confidence across the power sector.
He said the Federal Government was committed to resolving legitimate legacy obligations through a structured and transparent process.
The minister, however, stressed that debt settlement must be accompanied by reforms capable of preventing a recurrence of similar obligations.
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He called for greater efficiency, accountability and financial discipline throughout the electricity value chain to ensure the long-term sustainability of the sector.
The Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc, NBET, Akin Odeyemi, said the latest issuance followed N501 billion secured through Series-1 in January.
According to him, 11 GENCOs participated in the second series, compared with eight companies involved in the first issuance.
Also speaking, the Special Adviser to President Bola Tinubu on Oil and Gas, Olalekan Verheijen, said the agreements cover 21 power plants.
He described the second series as another step towards deepening implementation of the Presidential Power Sector Debt Reduction Programme.
Verheijen said the initiative should also be seen as part of broader efforts to restore financial confidence, liquidity and sustainability to the Nigerian Electricity Supply Industry.
Meanwhile, the Minister of Power, Joseph Tegbe, said the bond issuance demonstrates the Federal Government’s commitment to tackling the structural challenges confronting Nigeria’s electricity industry.
The Federal Government says resolving the accumulated debt, alongside wider sector reforms, remains critical to improving liquidity, restoring investor confidence and strengthening the country’s electricity market.
