The Federal Government has raised about N1.23 trillion through two bond issuances under its Presidential Power Sector Debt Reduction Programme, as it moves to address the estimated N4 trillion legacy debt owed to electricity Generation Companies (GenCos).
The Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), Akin Odeyemi, disclosed this in Abuja on Monday at a ceremony marking the latest phase of the programme.
Odeyemi said the Series 2 bond raised N728.9 billion, following the N501 billion secured under Series 1 in January.
The Series 2 issuance, launched in August, attracted 11 GenCos, up from eight participants in the first series. Odeyemi said the broader participation reflected increased confidence in the programme and its framework for settling verified outstanding obligations.
He said the N728.9 billion Series 2 bond would be implemented in two tranches, designated Tranches A and B.
According to him, accumulated unpaid obligations have weakened the financial position of electricity market participants and constrained GenCos’ ability to invest in additional generation capacity.
Odeyemi said the debt reduction programme should therefore be viewed beyond the settlement of historical liabilities, describing it as part of a wider effort to restore liquidity, financial confidence and sustainability across the Nigerian Electricity Supply Industry.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Series 2 transaction comprised N402 billion in cash bonds and N326.9 billion in non-cash bonds allocated to participating GenCos.
Oyedele said resolving the accumulated obligations was critical to rebuilding confidence across the electricity value chain, but cautioned that debt settlement alone would not prevent future accumulation.
He called for stronger market discipline, improved revenue assurance, reduced technical and commercial losses, greater efficiency and stronger accountability across the sector.
The Minister of Power, Joseph Tegbe, represented by Permanent Secretary Mahmuda Mamman, said the issuance demonstrated the Federal Government’s commitment to addressing structural challenges in the electricity industry and strengthening the financial foundation for more stable power supply.
The Special Adviser to the President on Oil and Gas, Olu Verheijen, said Series 1 had produced settlement agreements with 11 GenCos representing 21 power plants.
She said Series 2 would deepen and expand implementation, noting that the first phase had established the viability of the model while the latest issuance was designed to scale its impact.
