Second tranche under debt reduction programme targets legacy liabilities, boosts liquidity and strengthens confidence in Nigeria’s electricity market…..
The Federal Government has unveiled a N729 billion Series 2 Power Sector Bond, a major financing initiative aimed at clearing legacy debts in Nigeria’s electricity industry and attracting long-term private investment into the sector.
The announcement was made on Tuesday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during an investor forum in Abuja.
According to a statement issued by the minister’s Senior Special Assistant on Communications and Press, Maryann Duke, the bond forms part of the Presidential Power Sector Debt Reduction Programme, designed to settle verified outstanding obligations across the Nigerian Electricity Supply Industry (NESI).
Oyedele said the initiative is intended to improve liquidity within the power sector, restore investor confidence and strengthen the financial stability of the electricity market through transparent, market-driven reforms.
He noted that the government had already demonstrated its commitment to the programme through the successful issuance of the N501 billion Series 1 Bond, which was fully subscribed and has recorded its first scheduled repayment.
“The first series proved that government keeps its commitments. Investors reward execution, not promises, and every commitment honoured today lowers the cost of capital tomorrow,” the minister said.
According to Oyedele, proceeds from the second bond issuance will be used to settle verified debts owed to additional electricity generation companies (GenCos), gas suppliers and other service providers. He said the payments are expected to improve power generation, enhance market liquidity and strengthen operational efficiency across the sector.
The minister stressed that a reliable electricity supply remains essential for economic growth, industrial expansion, digital transformation and job creation, adding that sustainable national development cannot be achieved without a stable power infrastructure.
Beyond the power sector, Oyedele highlighted recent economic reforms introduced by the Tinubu administration, saying the measures have helped strengthen fiscal sustainability, improve the investment climate and support macroeconomic stability.
He cited Nigeria’s 3.9 percent economic growth in the first quarter of 2026, as well as 11.2 percent growth in US dollar terms in 2025, describing the figures as signs of improving investor confidence and stronger economic fundamentals.
Oyedele also emphasised the importance of private sector participation in closing Nigeria’s infrastructure financing gap, noting that public funds alone are insufficient to meet the country’s development needs.
He urged institutional investors to continue supporting government reforms, describing investments in the power sector bond as investments in economic productivity, industrial competitiveness, employment and long-term national prosperity.
The latest bond issuance comes as the Federal Government intensifies efforts to address long-standing financial challenges in the electricity sector. Earlier on Tuesday, the President’s Special Adviser on Energy, Olu Verheijen, announced that the government had cleared N333 billion in legacy debt owed to eight electricity generation companies.
