The Federal Government has raised N728.9 billion through its second bond issuance under the power sector debt reduction programme, as it moves to offset part of the N4 trillion legacy debt owed to electricity generation companies (GenCos).
Speaking at the launch in Abuja on Monday, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, 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 debts had weakened confidence across the electricity value chain, adding that the Federal Government was focused on settling legitimate legacy obligations through a structured and transparent process.
Oyedele stressed that the presidential power sector debt reduction programme must be accompanied by reforms designed to prevent similar obligations from accumulating again.
He also called for improved efficiency and accountability across the electricity ecosystem to ensure the long-term sustainability of the sector.
Akin Odeyemi, Chief Executive Officer of Nigerian Bulk Electricity Trading (NBET) Plc, said the latest Series 2 issuance raised N728.9 billion, following the N501 billion secured through Series 1 in January.
He said the second series, launched in August, involved 11 GenCos, compared with eight companies that participated in the first issuance.
Also speaking, Verheijen, Special Adviser to President Bola Tinubu on Oil and Gas, said the agreements covered 21 power plants, adding that Series 2 would further advance the 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 tackling the structural problems affecting Nigeria’s electricity industry.
The Federal Government issued its inaugural N501 billion bond under the programme in January before launching the second series in July.
