The Federal Government has unveiled a N729 billion Series 2 Power Sector Bond aimed at settling outstanding debts owed to electricity generation companies (GenCos), gas suppliers, and other service providers in the energy sector. The initiative, announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during an investor forum in Abuja, is part of the Presidential Power Sector Debt Reduction Programme designed to address long-standing financial obligations and strengthen Nigeria’s electricity industry.
According to Oyedele, the bond issuance represents a major step toward restoring confidence in the Nigerian Electricity Supply Industry (NESI) by resolving verified legacy debts through a transparent, market-driven approach. He noted that improving liquidity across the electricity value chain would encourage greater private sector participation and create a more stable environment for long-term investments in power infrastructure.
The minister highlighted the success of the first tranche of the programme, a N501 billion Series 1 Bond that was fully subscribed and has already recorded its first repayment. He described the achievement as proof of the government’s commitment to fulfilling its obligations, adding that consistent execution of reforms helps lower investment risks and strengthens investor confidence in Nigeria’s economy.
Oyedele explained that the new tranche would support the settlement of additional verified obligations to GenCos and gas suppliers, a move expected to improve power plant operations, enhance electricity generation capacity, and strengthen overall market stability. He stressed that reliable electricity remains critical to economic growth, industrial development, digital innovation, and job creation, noting that sustainable national development depends heavily on dependable power infrastructure.
Beyond the power sector, the minister pointed to broader economic reforms under President Bola Ahmed Tinubu’s administration, citing improved fiscal sustainability and stronger investor sentiment. He revealed that Nigeria recorded 3.9 percent economic growth in the first quarter of 2026 and 11.2 percent growth in dollar terms in 2025. Reinforcing the importance of private capital in closing infrastructure gaps, Oyedele urged institutional investors to continue supporting government reforms, while the Presidency disclosed that N333 billion in legacy debts owed to eight GenCos had already been settled, signaling continued efforts to stabilize and transform the country’s energy sector.
source: The Cable
