The Federal Government has issued a fresh N728.98 billion bond to settle verified legacy debts owed to 11 electricity generation companies (GenCos).
The Series 2 bond is part of the government’s N4 trillion Power Sector Multi-Instrument Issuance Programme. It comprises N402 billion in cash bonds raised from the domestic capital market and N326.98 billion in non-cash bonds allocated to participating GenCos.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the intervention is aimed at addressing accumulated debts that have weakened liquidity, limited investment and affected confidence in the electricity market.
However, the Nigerian Bulk Electricity Trading Plc said the power sector still faces an estimated annual revenue shortfall of about N1.7 trillion due to market revenue gaps and non-cost-reflective tariffs.
Oyedele said debt settlement must be accompanied by structural reforms, including improved revenue collection, reduced technical and commercial losses, stronger market discipline and greater accountability.
The latest issuance follows the N501 billion Series 1 bond issued in January 2026. The government said both phases have delivered more than N1.23 trillion under the N4 trillion programme.
The Federal Government said the intervention is expected to improve liquidity and restore confidence in the electricity supply industry, while officials stressed that further reforms are needed to achieve a financially sustainable power sector.
Post comments (0)