NewzBy Folarin Kehinde, Abuja ABUJA — The Federal Government has signed a ₦728.979 billion Series 2 bond under its ₦4 trillion Power Sector Debt Reduction Programme to settle verified legacy debts owed to electricity generation companies and improve liquidity in Nigeria’s power sector. The transaction comprises ₦402 billion in cash bonds raised from the domestic capital market and ₦326.979 billion in non-cash bonds allotted to participating generation companies. Speaking at the signing ceremony in Abuja, the Managing Director and Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, NBET, Mr Akinola Odeyemi, described the transaction as a major step towards addressing the longstanding financial challenges in the Nigerian Electricity Supply Industry.
Odeyemi said the programme was designed not only to settle historical obligations but also to restore financial confidence, improve liquidity and create conditions for increased investment in electricity generation. He disclosed that the Series 2 issuance, launched in August 2026, involved 11 generation companies, compared with eight that participated in Series 1. According to him, the increased participation reflects growing confidence among stakeholders in the Federal Government’s framework for resolving verified outstanding obligations in the power sector.
“Today’s event represents another important milestone in the Federal Government’s efforts to address the longstanding financial challenges confronting the Nigerian electricity supply industry and to strengthen the foundation for a more sustainable and reliable power sector,” he said. The NBET chief said Series 2 built on the completion of Series 1, which was concluded in January 2026 with an issue size of about ₦501 billion and participation from eight generation companies. He said the financial challenges in the sector had affected the entire electricity value chain, constrained liquidity and limited the ability of generation companies to invest in expanding their generation capacity.
Odeyemi said the debt reduction programme should therefore be viewed as more than a debt-settlement mechanism, describing it as part of broader efforts to restore financial sustainability in the electricity market. He added that NBET remained committed to working with government institutions, financial institutions, generation companies and other stakeholders to devel… By Folarin Kehinde, Abuja The Federal Government (FG) has signed the N728.979 billion Series-2 bond under its N4 trillion Power Sector Debt Reduction Programme, in a fresh move to settle verified legacy debts owed to electricity generation companies and restore liquidity to Nigeria’s power sector.
The transaction comprises N402 billion in cash bonds raised from the domestic capital market and N326.979 billion in non-cash bonds allotted to participating generation companies. Akinola Odeyemi, said the latest transaction represented a significant milestone in the Federal Government’s efforts to address longstanding financial challenges confronting the Nigerian Electricity Supply Industry. He noted that the Series-2 issuance, launched in August 2026, involved 11 generation companies, up from eight companies that participated in Series-1.
According to him, the increased participation demonstrates growing confidence among stakeholders in the Federal Government’s framework for addressing verified outstanding obligations in the power sector. Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the Series-2 transaction represented an important step towards resolving the accumulated legacy obligations that had weakened liquidity and constrained investment across Nigeria’s electricity market.
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