The Federal Government has concluded plans to raise about ₦729 billion through a second bond issuance to offset verified legacy debts owed to electricity generation companies (GenCos), as part of efforts to improve liquidity and restore confidence in Nigeria’s power sector.
The planned bond issuance will be preceded by an Investors’ Forum scheduled for Tuesday, July 21, 2026, and will complete the first phase of the Presidential Power Sector Debt Reduction Programme.
With the latest issuance, the total value of the first two bonds under the programme will rise to about ₦1.23 trillion.
The Nigerian Bulk Electricity Trading Plc (NBET) disclosed this in a statement on Sunday, noting that the proposed issuance follows the successful release of about ₦501 billion in January under the debt reduction initiative approved by President Bola Tinubu.
According to NBET, the first coupon and principal repayment on the Series 1 bond became due on July 14, 2026, and was redeemed in full and on schedule, underscoring the Federal Government’s commitment to honouring its financial obligations and boosting investor confidence.
The agency explained that the ₦1.23 trillion represented by the Series 1 and Series 2 issuances forms the first phase of the broader ₦4 trillion Presidential Power Sector Debt Reduction Programme designed to resolve longstanding financial liabilities in the electricity industry.
NBET said the programme is intended to settle verified debts owed to electricity generation companies through a transparent, market-driven financing framework while improving liquidity across the Nigerian Electricity Supply Industry (NESI).
The Chief Executive Officer of NBET, Johnson Akinnawo, described the forthcoming bond issuance as another significant milestone in the government’s efforts to stabilise the power sector.
He said the initiative would strengthen the financial position of market participants, encourage fresh investments and support sustainable electricity generation.
“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 strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” he said.
Akinnawo recalled that the Federal Executive Council approved the establishment of the ₦4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET designated as the sponsoring institution for settling verified legacy obligations in the electricity market.
He explained that the programme would be implemented through multiple debt issuances by NBET Finance Company Plc, a special purpose vehicle created specifically for the initiative.
According to him, the debt instruments are backed by the full faith and credit of the Federal Government and supported by a comprehensive risk mitigation framework aimed at ensuring successful implementation.
He added that the second bond issuance would represent another major step towards eliminating longstanding debts in the electricity sector and creating a more stable, bankable and investment-friendly power market capable of supporting Nigeria’s economic growth.
The Federal Government has consistently maintained that the debt reduction programme is aimed at restoring financial sustainability to the electricity sector, improving the bankability of the market and attracting new investments needed to expand power generation and improve electricity supply across the country.