The Federal Government has mobilised about N1.23 trillion through two bond issuances under its power sector debt reduction programme, a step aimed at clearing roughly N4 trillion in legacy obligations owed to electricity generation companies.
Akin Odeyemi, Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, disclosed the figures in Abuja on Monday, according to the News Agency of Nigeria. He explained that the second series raised N728.9 billion, following the N501 billion secured through Series 1 in January.
The Series 2 issuance, which opened in August, drew 11 GenCos compared with eight in the earlier transaction. Odeyemi described the wider participation as evidence of rising stakeholder confidence in the programme. The N728.9 billion raised under Series 2 will be deployed through Tranches A and B.
Odeyemi noted that unpaid legacy obligations had weakened the finances of market participants and constrained GenCos' capacity to invest in additional generation. He said the programme should be viewed not merely as a mechanism for clearing historical liabilities, but also as a tool for restoring liquidity and financial confidence across the Nigerian Electricity Supply Industry. "The increased participation is a positive development and reflects the growing confidence of stakeholders in the programme," he stated.
Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele said Series 2 comprised N402 billion in cash bonds and N326.9 billion in non-cash bonds allocated to participating GenCos under the Presidential Power Sector Debt Reduction Programme. He said the transaction was designed to address accumulated obligations that had weakened liquidity and confidence throughout the electricity value chain.
Oyedele, however, cautioned that settling the debt alone would not resolve the sector's financial difficulties. He said the bond programme "cannot stand alone" and called for stronger market discipline, improved revenue assurance, lower technical and commercial losses, and greater accountability across the electricity ecosystem. He added that the Federal Government was using Nigeria's domestic capital market to address legitimate legacy obligations through a structured and transparent process.
Minister of Power Joseph Tegbe, represented by Permanent Secretary Mahmuda Mamman, said the issuance reflected the government's commitment to tackling structural weaknesses in the electricity industry and strengthening the sector's financial position.
