The federal government has commenced the second tranche of its guaranteed power sector bond, valued at approximately N729 billion.
Taiwo Oyedele, minister of finance and coordinating minister of the economy, announced the development at an investor forum for the bond issuance in Abuja on Tuesday.
Speaking at the event, the minister reaffirmed the federal government’s commitment to restoring financial sustainability in Nigeria’s power sector.
He said the series 2 bond issuance is a strategic milestone in the implementation of the presidential power sector debt reduction programme (PPSDRP), aimed at resolving verified legacy liabilities, restoring investor confidence, and strengthening the financial foundation of the Nigerian electricity supply industry (NESI).
Oyedele noted that the initiative demonstrates the federal government’s resolve to honour its commitments through transparent, market-based reforms that improve liquidity across the electricity value chain while creating a more attractive environment for long-term private investment.
According to the minister, the successful execution of the maiden N501 billion series 1 bond, which was fully subscribed and has already recorded its first scheduled repayment, provides clear evidence that Nigeria’s reform programme is delivering measurable results.
“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 tax expert was quoted as saying in a statement.
Oyedele said the second tranche will extend the settlement of verified obligations to additional generation companies, gas suppliers, and service providers.
This, he said, would help to improve plant availability, strengthen market liquidity and enhance operational stability across the power sector.
He noted that reliable electricity remains the foundation of economic growth, industrialisation, digital transformation and job creation, adding that no nation has achieved sustained development without dependable power infrastructure.
The minister also highlighted broader macroeconomic reforms being implemented under the administration of President Bola Ahmed Tinubu, including measures to strengthen fiscal sustainability, improve the investment climate, and restore economic stability.
He noted that Nigeria recorded 3.9 percent economic growth in “the first quarter (Q1) of 2026, while the economy expanded by 11.2 percent in US dollar terms in 2025”, reflecting growing investor confidence and improving macroeconomic fundamentals.
However, Oyedele noted that public resources alone cannot meet Nigeria’s vast infrastructure financing needs, underscoring the importance of mobilising long-term private capital through credible institutions, sound policy frameworks and innovative financing structures.
The minister called on institutional investors to continue partnering with the government in supporting reforms that strengthen the economy, noting that investments in the bond represent investments not only in electricity, but also in productivity, industrial competitiveness, job creation, and shared prosperity.
He reiterated the federal Government’s commitment to sustaining reforms that build confidence, strengthen institutions, and position Nigeria as a competitive destination for investment.
The federal government had said it paid N333 billion to eight participating electricity generation companies (GenCos), covering 17 power plants, under the first phase of the power sector debt settlement programme.
