The Federal Government has signed a N728.979 billion Series-2 bond agreement under its N4 trillion Power Sector Debt Reduction Programme to settle verified legacy debts owed to electricity generation companies and improve liquidity in the power sector.
The transaction comprises N402 billion in cash bonds raised from the domestic capital market and N326.979 billion in non-cash bonds allotted to participating generation companies.
Speaking at the signing ceremony in Abuja, the Managing Director and Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, Akinola Odeyemi, described the transaction as a major step in the Federal Government’s efforts to address the financial challenges facing the Nigerian Electricity Supply Industry.
Odeyemi said the programme was aimed at settling historical debts, restoring confidence in the electricity market and creating conditions for increased investment in power generation.
He said the Series-2 issuance, launched in August 2026, involved 11 generation companies, compared with eight that participated in the first series.
According to him, the increased participation showed growing confidence among stakeholders in the government’s approach to resolving verified outstanding debts in the sector.
“Today’s event represents another important milestone in the Federal Government’s efforts to address the longstanding financial challenges confronting the Nigerian electricity supply industry and to strengthen the foundation for a more sustainable and reliable power sector,” he said.
Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Series-2 transaction was an important step towards resolving accumulated legacy debts that had weakened liquidity and constrained investment in the electricity market.
Oyedele, however, said the bond programme alone could not solve the sector’s problems.
He said improvements in market policies, revenue collection, reduction of technical and commercial losses, efficiency and accountability were also needed across the electricity value chain.
The minister said the transaction also demonstrated the ability of the Federal Government to use the domestic capital market to tackle major economic challenges while mobilising long-term funds.
Oyedele warned that the success of the programme should not be measured solely by the volume of bonds issued.
The Senior Special Adviser to the President on Energy, Olu Verheijen, represented by Iriye Onaguruwa, said the Series-2 transaction marked a major expansion of the Presidential Power Sector Financial Reform Programme.
