The Federal Government has announced plans to issue a second bond worth approximately N729 billion to settle verified legacy debts owed to electricity generation companies (GenCos), a move aimed at strengthening Nigeria’s power sector and restoring investor confidence. The bond issuance, disclosed by the Nigerian Bulk Electricity Trading (NBET) Plc, forms part of the Presidential Power Sector Debt Reduction Programme (PPSDRP) designed to tackle long-standing financial challenges within the electricity industry.
According to NBET, the new bond will complete the first phase of the programme following the successful issuance of a N501 billion inaugural bond in January 2026. Together, both issuances will amount to N1.23 trillion under the Series 1 and Series 2 components of the capital market financing initiative. The government is expected to engage investors at a dedicated forum scheduled for July 21, ahead of the second bond issuance.
NBET highlighted that the first coupon and principal repayment on the initial bond, which became due on July 14, 2026, was paid promptly and in full. The agency said this demonstrates the Federal Government’s commitment to honoring its financial obligations and reinforces confidence among investors. The successful repayment is expected to strengthen market interest as the government moves forward with the next phase of the programme.
Speaking on the development, NBET Chief Executive Officer, Johnson Akinnawo, described the upcoming issuance as another major step toward resolving legacy debts through a transparent and market-driven approach. He noted that improving liquidity across the electricity value chain would strengthen the financial health of industry participants, encourage fresh investments, and support sustainable electricity generation across the country.
Akinnawo further explained that the Federal Executive Council approved the N4 trillion PPSDRP in 2025, with NBET serving as the sponsoring institution. The programme will be implemented through multiple debt issuances backed by the full faith and credit of the Federal Government. He added that the N729 billion bond represents a significant milestone in creating a more stable, bankable, and investment-friendly electricity market capable of supporting Nigeria’s economic growth and delivering a more reliable power supply for millions of Nigerians.
source: The cable
