Federal Government has unveiled a ₦729 billion Series II bond to settle verified legacy debts owed to electricity generation companies (GenCos) and gas suppliers, marking another phase of its efforts to restore liquidity and financial stability in Nigeria’s power sector.
Gatekeepers News reports that the bond forms part of the ₦4 trillion Presidential Power Sector Debt Reduction Programme (PPSDRP) approved by President Bola Ahmed Tinubu.
Nigerian Bulk Electricity Trading (NBET) Plc said the new issuance follows the successful ₦501 billion Series I bond floated in January 2026. Combined, the two bonds amount to about ₦1.23 trillion, representing the first phase of the government’s broader plan to clear long-standing obligations across the Nigerian Electricity Supply Industry (NESI).
According to NBET, the government has already honoured the first coupon and principal repayment on the inaugural bond, which matured on July 14, 2026, a move officials say demonstrates the Federal Government’s commitment to meeting its financial obligations and strengthening investor confidence ahead of the latest issuance.
NBET Managing Director and Chief Executive Officer, Johnson Akinnawo, said the second bond underscores the government’s resolve to resolve verified legacy debts through a transparent and market-based financing mechanism.
He noted that improving liquidity across the electricity value chain would strengthen the financial position of market participants, encourage fresh investment and support more reliable electricity generation nationwide.
The debt reduction programme, approved by the Federal Executive Council in 2025, will be executed through multiple debt issuances by NBET Finance Company Plc, a special purpose vehicle established for the initiative.
The debt instruments are backed by the full faith and credit of the Federal Government and are expected to create a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth.
