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FG to Issue ₦729bn Bond for Power Sector Debt
The Federal Government will tomorrow host an investors’ forum in Abuja ahead of issuing a ₦729 billion bond to settle verified debts owed to electricity generation companies (GenCos).
This issuance completes the first phase of the Presidential Power Sector Debt Reduction Programme, following the successful ₦501 billion bond issued in January 2026.
Together, the two bonds form the ₦1.23 trillion Series 1 and 2 component of the broader ₦4 trillion programme approved by President Bola Tinubu.
The initiative is designed to improve liquidity in the Nigerian Electricity Supply Industry (NESI), strengthen financial sustainability, and restore investor confidence.
Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), Johnson Akinnawo, described the move as a milestone, “The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism.”
He explained that the framework allows NBET Finance Company Plc, a special-purpose vehicle, to issue debt instruments backed by the full faith and credit of the Federal Government, with risk-mitigation measures to ensure successful execution.
“By improving liquidity across the electricity value chain, the programme will help strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” Akinnawo added.
The Federal Executive Council approved the ₦4 trillion programme in 2025, with NBET designated to sponsor the settlement of verified legacy debts.
The upcoming ₦729 billion issuance is expected to mark a decisive step toward resolving longstanding financial obligations and building a more stable, bankable, and investment-friendly electricity market capable of supporting Nigeria’s economic growth
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