The federal government is preparing to issue a second bond valued at about N729 billion under the Presidential Power Sector Debt Reduction Programme, as part of ongoing efforts to settle verified legacy debts owed to electricity Generation Companies (Gencos) and improve liquidity within the Nigerian Electricity Supply Industry.
Ahead of the planned issuance, the government announced yesterday that it would hold an investors’ forum tomorrow (Tuesday, July 21) to engage potential investors and provide further details on the transaction.
The proposed bond issuance comes after the successful launch of a N501 billion bond in January 2026. The two issuances, when combined, will raise approximately N1.23 trillion, representing the completion of the first phase of the N4 trillion debt reduction programme approved by President Bola Tinubu to resolve longstanding financial obligations in the power sector.
In a statement issued in Abuja, the Nigerian Bulk Electricity Trading Plc (NBET) disclosed that the first coupon and principal repayment for the January bond, which matured on July 14, were paid promptly and fully.
According to the organisation, the timely repayment reflects the federal government’s creditworthiness, commitment to honouring contractual obligations, and efforts to boost investor confidence in the programme.
NBET stated that the N1.23 trillion generated from the first and second issuances constitutes the Series 1 and Series 2 components of the Capital Market Multi Instrument Issuance Programme, which serves as the first stage of the wider N4 trillion initiative.
The agency noted that the January bond issuance demonstrated the government’s financially responsible approach to clearing verified obligations owed to Gencos, while enhancing liquidity and supporting the long-term sustainability of the electricity market.
Speaking on the development, the Chief Executive Officer of NBET, Mr. Johnson Akinnawo, described the proposed second issuance as a significant milestone in the government’s drive to restore confidence and stability in the power sector.
“The second issuance demonstrates the federal government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism,” he said.
Akinnawo explained that strengthening liquidity throughout the electricity value chain would improve the financial position of market participants, attract new investments and promote sustainable power generation.
He recalled that the Federal Executive Council (FEC) approved the creation of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET appointed as the sponsoring institution responsible for settling verified legacy debts.
He further stated that the programme would be executed through a series of debt instrument issuances by NBET Finance Company Plc, a special purpose vehicle created specifically for the initiative.
According to him, the instruments are backed by the full faith and credit of the federal government and supported by a comprehensive risk mitigation structure aimed at ensuring effective implementation.
“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.
Akinnawo added that the planned N729 billion bond would represent another major step towards addressing accumulated liabilities in the electricity sector and developing a more stable, bankable and investment-friendly market capable of attracting capital.
“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,” the NBET chief executive explained.
