FG to Issue N729 Billion Power Bond to Clear Electricity Debts, Boost Power Supply Across Nigeria

FG to Issue N729 Billion Power Bond to Clear Electricity Debts, Boost Power Supply Across Nigeria

The Federal Government of Nigeria is set to issue a second bond worth approximately N729 billion under the Presidential Power Sector Debt Reduction Programme (PPSDRP) as part of efforts to clear verified legacy debts owed to electricity Generation Companies (GenCos) and strengthen the country's power sector.

The new issuance follows the successful N501 billion bond floated in January 2026. Together, both issuances will raise about N1.23 trillion, completing the first phase of the Federal Government's ambitious N4 trillion debt reduction programme approved by President Bola Ahmed Tinubu to restore financial stability in Nigeria's electricity industry.

Ahead of the bond issuance, the Federal Government will host an Investors' Forum on Tuesday, July 21, to engage prospective investors and provide details on the transaction, which is expected to attract significant interest from the capital market.

In a statement released in Abuja, the Nigerian Bulk Electricity Trading Plc (NBET) confirmed that the first coupon and principal repayment on the January bond, which matured on July 14, 2026, was paid promptly and in full. The successful repayment demonstrates the Federal Government's commitment to honoring its financial obligations while strengthening investor confidence.

According to NBET, the combined N1.23 trillion raised through the first and second bond issuances represents Series 1 and Series 2 of the Capital Market Multi-Instrument Issuance Programme, which forms the first phase of the broader N4 trillion Presidential Power Sector Debt Reduction Programme.

The initiative is designed to improve liquidity across the Nigerian Electricity Supply Industry (NESI), settle verified debts owed to GenCos, restore confidence among market participants, encourage fresh investment, and support sustainable electricity generation nationwide.

Speaking on the programme, NBET Chief Executive Officer, Johnson Akinnawo, described the second bond issuance as another major milestone in the government's efforts to resolve long-standing financial obligations in the electricity sector through a transparent, structured, and market-driven approach.

He explained that improving liquidity throughout the electricity value chain would strengthen the financial position of market participants, attract new investments, and create a more stable and bankable power market capable of delivering reliable electricity to Nigerians.

Akinnawo also recalled that the Federal Executive Council (FEC) approved the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET designated as the sponsoring institution responsible for settling verified legacy debts through NBET Finance Company Plc, a Special Purpose Vehicle (SPV) established for the programme.

He added that all debt instruments issued under the programme are backed by the full faith and credit of the Federal Government, alongside a comprehensive risk mitigation framework designed to ensure successful implementation and protect investors.

The planned N729 billion bond is expected to accelerate efforts to resolve long-standing liabilities in the electricity sector, improve the financial health of power market participants, stimulate new investments, and lay the foundation for a more reliable and sustainable electricity supply across Nigeria.

If successfully implemented, the programme could mark a turning point in Nigeria's power sector by reducing financial bottlenecks, improving electricity generation, and supporting economic growth.

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