The Federal Government has initiated moves to issue a second bond worth about N729bn to offset verified debts owed to electricity generation companies (GenCos.
This was made known in a statement on Sunday by the Nigerian Bulk Electricity Trading Plc, which said the latest bond issuance follows the success of the release of about N501bn in January 2026 under the programme approved by President Bola Tinubu.
The planned issuance, which will be preceded by an Investors’ Forum scheduled for Tuesday, July 21, 2026, will complete the first phase of the Presidential Power Sector Debt Reduction Programme, bringing the total value of the first two bond issuances to about N1.23tn.
According to the statement, the first coupon and principal repayment on the Series 1 bond fell due on July 14, 2026, and were settled promptly and in full.
It explained that the two issuances represent the N1.23tn Series 1 and Series 2 components of the Capital Market Multi-Instrument Issuance Programme, which is the first phase of the broader N4tn Presidential Power Sector Debt Reduction Programme approved by the President to address longstanding financial obligations in Nigeria’s electricity sector.
The statement noted that the January 2026 issuance formed part of the Federal Government’s fiscally responsible strategy to settle verified obligations owed to electricity generation companies, improve liquidity across the Nigerian electricity supply industry and strengthen the financial sustainability of the sector.
The Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc, Johnson Akinnawo, said:
“The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured, and market-based mechanism.
“By improving liquidity across the electricity value chain, the programme will help strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” Aknnawo said.
Akinnawo recalled that the Federal Executive Council approved the establishment of the N4tn Presidential Power Sector Debt Reduction Programme in 2025, with the Nigerian Bulk Electricity Trading Plc designated as the sponsoring institution for the settlement of verified legacy debts in the electricity sector.
He explained that the approved framework provides for the programme to be implemented through multiple issuances of debt instruments by NBET Finance Company Plc, a special purpose vehicle established specifically for the programme.
“The programme has the full backing of the Federal Government and incorporates a robust suite of instruments designed to mitigate transaction risks and support successful execution,” he said.
He added, “The issuance of the approximately N729bn second bond would represent a decisive step towards resolving longstanding financial obligations and establishing a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth.”
(Ripples)
