Federal Government has raised N728.9 billion through its second bond issuance to offset the N4 trillion legacy debt owed to electricity generation companies (GenCos).
Gatekeepers News reports that speaking at the launch of the bond in Abuja on Monday, Taiwo Oyedele, minister of finance and coordinating minister of the economy, said the second series comprised N402 billion in cash bonds and N326.9 billion in non-cash bonds allocated to participating GenCos.
The latest issuance brings the total amount raised under the programme to N1.23 trillion.
“This transaction addresses an important challenge in Nigeria’s electricity market, which is accumulated legacy obligations that have weakened liquidity, constrained investments and affected,” Oyedele said.
The minister said the outstanding obligations had affected confidence across the electricity value chain, adding that the government’s objective was to resolve legitimate legacy obligations through a structured and transparent process.
Oyedele said the Presidential Power Sector Debt Reduction Programme must be accompanied by reforms to prevent similar debts from recurring. He also called for greater efficiency and accountability across the electricity ecosystem.
Akin Odeyemi, chief executive officer of Nigerian Bulk Electricity Trading (NBET) Plc, said the latest issuance followed the N501 billion raised through the first series in January.
He said the second series, launched in August, involved 11 GenCos, compared with eight companies that participated in the first issuance.
Verheijen, special adviser to President Bola Tinubu on oil and gas, said the agreements cover 21 power plants and that the second series would deepen implementation of the debt reduction programme.
“It should also be viewed as part of a broader effort to restore financial confidence, liquidity and sustainability to the Nigerian Electricity Supply Industry,” he said.
Joseph Tegbe, minister of power, said the bond issuance demonstrated the Federal Government’s commitment to addressing structural challenges confronting the electricity industry.
Federal Government had issued a N501 billion inaugural bond under the programme in January before launching the second series in July.
