Nigeria to Issue N729 Billion Bond to Clear Power Sector Debts

Nigeria's Federal Government is preparing to issue a second bond valued at approximately N729 billion. This move aims to settle verified legacy debts owed to electricity generation companies (GenCos), thereby improving liquidity within the nation's power sector.

The planned issuance will finalize the first phase of the N4 trillion Presidential Power Sector Debt Reduction Programme. This program, approved by President Bola Tinubu, is designed to address long-standing financial obligations within the Nigerian Electricity Supply Industry (NESI). The upcoming bond follows the successful issuance of a N501 billion Series 1 bond in January 2026. Together, these issuances represent the N1.23 trillion first phase of the debt reduction initiative.

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The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism.

According to the Nigerian Bulk Electricity Trading Plc (NBET), the new bond issuance is expected to bolster investor confidence, enhance liquidity across the electricity value chain, and promote sustainable power generation. NBET highlighted the timely and full repayment of the first coupon and principal on the Series 1 bond, which matured on July 14, 2026, as proof of the government's commitment. NBET's Managing Director, Johnson Akinnawo, called the planned issuance a significant step towards restoring stability and resolving the power sector's debt burden through a transparent, market-based mechanism.

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Improved liquidity in the electricity value chain would strengthen market confidence, attract investment and support increased power generation for Nigerians.