Federal Government has announced plans to issue a second bond worth about N729 billion to settle verified legacy debts owed to electricity generation companies (GenCos), as part of efforts to strengthen liquidity and restore financial stability in Nigeria’s power sector.
Gatekeepers News reports that the bond issuance forms part of the Presidential Power Sector Debt Reduction Programme (PPSDRP), which is designed to address long-standing financial obligations across the Nigerian Electricity Supply Industry (NESI).
According to the Nigerian Bulk Electricity Trading (NBET) Plc, the planned issuance will complete the first phase of the programme after the Federal Government successfully floated a ₦501 billion inaugural bond in January 2026. Together, the two issuances amount to ₦1.23 trillion, representing the first phase of the broader ₦4 trillion debt reduction initiative approved by President Bola Tinubu.
NBET said an investors’ forum will be held on July 21 ahead of the bond issuance, adding that the government promptly settled the first coupon and principal repayment on the Series 1 bond, demonstrating its commitment to meeting contractual obligations and boosting investor confidence.
NBET Managing Director and Chief Executive Officer, Johnson Akinnawo, described the planned bond as another major step towards resolving verified legacy debts through a transparent, structured and market-based process. He said the programme would improve liquidity across the electricity value chain, strengthen the financial position of market participants, attract fresh investment and support sustainable electricity generation for Nigerians.
The agency added that the Federal Executive Council approved the ₦4 trillion debt reduction programme in 2025, with NBET designated to implement the initiative through multiple debt issuances backed by the full faith and credit of the Federal Government.
