The Federal Government has concluded arrangements on the issuance of its second bond worth about N729 billion to pay verified legacy debts owed to electricity generation companies (GenCos) as part of its sustained efforts targeted at improving fundign in the nation’s power sector for sustainable national development.
The proposed issuance of the debt instrument, which will be preceded by an Investors’ Forum scheduled for tomorrow, July 21, will complete the first phase of the Presidential Power Sector Debt Reduction Programme, and increase the total value of the first two bond issuances to about N1.23 trillion.
A statement issued on Sunday by the Nigerian Bulk Electricity Trading Plc (NBET), indicated that the latest bond issuance followed the successful release of about N501 billion in January 2026 to the GenCos under the programme approved by President Bola Tinubu.
According to the NBET, the first coupon and principal repayment on the Series 1 bond fell due on July 14, 2026, and were settled in full, demonstrating the government’s commitment to meeting its contractual obligations and reinforcing investor confidence ahead of the second issuance.
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It stated that the two issuances represented the N1.23 trillion Series 1 and Series 2 components of the Capital Market Multi-Instrument Issuance Programme, which was the first phase of the broader N4 trillion Presidential Power Sector Debt Reduction Programme approved by the President to address longstanding financial obligations in Nigeria’s electricity sector.
The NBET recalled that the January 2026 issuance formed part of the Federal Government’s fiscally responsible strategy to settle verified obligations owed the GenCos, improve liquidity across the nation’s electricity supply value chain and strengthen the financial sustainability of the sector.
Commenting on the government’s initiative, the NBET Chief Executive Officer, Johnson Akinnawo, described the planned bond issuance as another major step in the government’s efforts to boost liquidity into the sector, reinforce investor confidence and promote the long-term stability of the power sector.
He said: “The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured, and market-based mechanism.
“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”, the NBET boss added.
He recalled that the Federal Executive Council approved the establishment of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with the NBET designated as the sponsoring agency for the settlement of verified legacy debts in the electricity sector.
Akinnawo explained that the approved programme provided for the programme to be implemented through multiple issuances of debt instruments by NBET Finance Company Plc, a special purpose vehicle established specifically for the programme.
The industry expert assured that the debt instruments were backed by the full faith and credit of the Federal Government and supported by a comprehensive package of risk mitigation measures designed to ensure successful execution of the programme.
Akinnawo clarified that the issuance of the approximately N729 billion second bond would mark another significant step towards resolving the longstanding financial obligations that have weighed on the electricity market for years.
He said: “The issuance of the approximately N729bn second bond would represent a decisive step towards resolving longstanding financial obligations and establishing a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth.”
The Federal Government has maintained that the Presidential Power Sector Debt Reduction Programme was introduced to raise funds for the settlement of verified debts owed the GenCos through a structured, market-based financing arrangement, and by implication strengthening the financial sustainability of the Nigerian electricity supply industry and attracting more investments into the sector.
