Second debt issuance will complete the first phase of a N4 trillion intervention programme aimed at settling verified obligations owed to electricity generation companies…..
The Federal Government is preparing to issue a second bond worth about N729 billion as part of its ongoing efforts to settle long-standing debts owed to electricity generation companies (GenCos) and improve liquidity across Nigeria’s power sector.
The planned issuance, announced by the Nigerian Bulk Electricity Trading (NBET) Plc on Monday, will complete the first phase of the Presidential Power Sector Debt Reduction Programme (PPSDRP), a multi-trillion-naira initiative designed to address legacy financial obligations within the electricity industry.
The development follows the successful issuance of a N501 billion inaugural bond in January 2026, bringing the total value of the first two tranches under the programme to N1.23 trillion.
According to NBET, the Federal Government will host an investors’ forum on July 21 ahead of the launch of the second bond, as part of efforts to engage stakeholders and sustain investor confidence.
The agency also disclosed that the first coupon payment and principal repayment on the initial bond matured on July 14, 2026, and were settled in full and on schedule. It said the timely repayment reflects the government’s commitment to honouring its financial obligations and is expected to strengthen investor confidence ahead of the new issuance.
NBET explained that the two bond issuances represent the first phase of a broader N4 trillion Capital Market Multi-Instrument Issuance Programme approved by President Bola Tinubu to resolve verified legacy debts in Nigeria’s electricity sector.
The agency noted that the debt reduction initiative forms part of the government’s wider fiscal strategy to improve cash flow across the Nigerian Electricity Supply Industry (NESI), enhance market stability and support the long-term sustainability of the sector.
NBET Managing Director and Chief Executive Officer, Johnson Akinnawo, described the upcoming bond issuance as another major milestone in the government’s efforts to restore confidence in the power market through a transparent and market-driven approach.
He said clearing verified debts owed to participants across the electricity value chain would improve liquidity, strengthen the financial health of industry operators, attract fresh investments and support more reliable electricity generation for Nigerians.
Akinnawo recalled that the Federal Executive Council approved the establishment of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET appointed as the sponsoring institution responsible for implementing the initiative.
He explained that the programme will be executed through multiple debt issuances by NBET Finance Company Plc, a special-purpose vehicle established specifically to settle verified legacy obligations in the power sector.
According to him, the debt instruments are fully backed by the Federal Government and supported by a comprehensive risk-mitigation framework designed to ensure successful execution of the programme.
Akinnawo expressed confidence that the planned N729 billion bond would further strengthen Nigeria’s electricity market by creating a more stable, bankable and investment-friendly environment capable of supporting economic growth and attracting long-term capital into the sector.
