The Federal Government has raised N728.979bn through the second issuance under its N4tn Power Sector Multi-Instrument Issuance Programme, bringing the value of bonds issued under the first phase of the initiative to approximately N1.23tn.
The latest issuance is aimed at settling verified outstanding debts owed to electricity generation companies, whose unpaid claims have weakened liquidity and constrained investments across the power sector.
The Series 2 bond follows the successful completion of the inaugural N501.021bn Series 1 issuance in January 2026. The first bond recorded 100 per cent subscription, with N300bn raised from the capital market and N201.021bn issued as non-cash bonds to participating generation companies.
The latest transaction comprises N402bn in cash bonds raised from the capital market and N326.979bn in non-cash bonds allotted to participating GenCos under the Presidential Power Sector Debt Reduction Programme
Speaking at the signing ceremony in Abuja on Monday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the transaction was designed to address the legacy obligations that had weakened the electricity market.
He said, “This transaction addresses an important challenge in Nigeria’s electricity markets, which is accumulated legacy obligations that have weakened liquidity, constrained investments, and affected confidence across the value chain.
“The federal government’s objective is to resolve legitimate legacy obligations in a structured and transparent manner, while implementing the reforms necessary to prevent their recurrence.”
Oyedele warned that the bond programme must be supported by reforms capable of preventing the accumulation of fresh debts, stressing that the government’s objective was to build a financially sustainable electricity market.
“This means the bond programme cannot stand alone. It must be accompanied by stronger market discipline, improved revenue assurance, reduction in technical and commercial losses, greater efficiency and accountability across the electricity ecosystem.
“It is also important that we are leveraging Nigeria’s domestic capital markets. This demonstrates how the government can use appropriate market instruments to address significant economic challenges, while deepening our financial markets and mobilizing long-term domestic capital,” he said.
The minister added that the success of the programme would not be measured by the amount of money raised, but by its impact on electricity supply and the ability of market participants to meet their obligations.
“Ultimately, the success of this programme will not be measured by the amount or size of the bond that we have issued. It will be measured by whether we achieve a financially sustainable electricity market that can attract investments, meet its obligations and deliver more reliable power to Nigerian households and businesses,” Oyedele stated.
The Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc, Akinola Odeyemi, said the Series 2 bond had an aggregate value of N728.979bn and would be implemented in two tranches, Tranche A and Tranche B.
He disclosed that 11 generation companies were participating in the second phase, compared with eight GenCos under Series 1. Odeyemi said the increased participation reflected growing confidence in the programme and its ability to provide a credible framework for addressing verified outstanding obligations in the electricity sector.