The Federal Government has raised a combined ₦1.23 trillion through two bond issuances as part of efforts to clear legacy debts owed to electricity Generation Companies (GenCos) and restore liquidity across Nigeria’s power sector.
The latest issuance, Series 2 of the Presidential Power Sector Debt Reduction Programme, raised ₦728.9 billion, adding to the ₦501 billion secured under Series 1 in January 2026.
Akin Odeyemi, Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), disclosed the development in Abuja, saying participation in the latest issuance had expanded to 11 GenCos operating 21 power plants, compared with eight GenCos and 17 plants under the first phase.
The increased participation, according to officials, reflects growing confidence in the government’s structured approach to addressing the sector’s long-standing debt crisis.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, said the latest ₦728.9 billion issuance comprises ₦402 billion in cash bonds and ₦326.9 billion in non-cash bonds.
The programme followed a government verification exercise that reviewed claims by power generation companies and reduced the initial debt figure of more than ₦4 trillion to about ₦3.3 trillion.
Under Series 1, the government disbursed ₦333 billion to eight participating GenCos, covering 17 power plants.
The first phase also recorded a coupon payment of about ₦63.5 billion on July 14, 2026, providing participating companies with funds to settle obligations to gas suppliers and lenders.
Series 2 now extends the settlement framework to four additional GenCos and four more power plants.
The bond programme is designed to inject liquidity into a sector where unpaid obligations have contributed to persistent financial pressures across the electricity value chain.
However, government officials stressed that settling legacy debts must be accompanied by reforms that address the underlying weaknesses in the power market.
Minister of Power Joseph Tegbe, represented by Permanent Secretary Mahmuda Mamman, said the initiative demonstrates the government’s determination to address structural problems within the electricity market.
Oyedele similarly warned that financial intervention must go hand in hand with stronger market discipline, improved accountability and efforts to reduce technical and commercial losses.
The message is significant: clearing old debts may give the power sector breathing room, but it does not automatically guarantee reliable electricity.
For the intervention to produce lasting results, GenCos, gas suppliers, transmission operators, distribution companies and other market participants will need to operate within a framework that improves payment discipline and ensures that new debts do not simply accumulate after the old ones are settled.
