Federal Government to Issue ₦729bn Bond to Settle Electricity Generation Debts

The Federal Government is preparing to issue a second bond valued at approximately ₦729 billion to settle verified legacy debts owed to power generation companies (GenCos), aimed at improving liquidity and restoring investor confidence in Nigeria’s electricity sector.

The upcoming issuance will complete the initial phase of the ₦4 trillion Presidential Power Sector Debt Reduction Programme approved by President Bola Tinubu. It follows a prior ₦501 billion bond issuance released in January 2026. Combined, the two issuances bring the total value of Phase 1 debt settlements to ₦1.23 trillion.

An Investors’ Forum scheduled for Tuesday, July 21, 2026, will precede the official issuance.

According to a statement from the Nigerian Bulk Electricity Trading Plc (NBET), the first coupon and principal repayments for the Series 1 bond were fully settled on July 14, 2026. The agency stated that meeting these initial commitments demonstrates the government’s intent to fulfill contractual terms ahead of the second bond tranche.

Chief Executive Officer of NBET, Johnson Akinnawo, noted that the debt instruments are issued via NBET Finance Company Plc a special purpose vehicle and are fully backed by federal credit guarantees. He emphasized that resolving these outstanding liabilities through market-based debt instruments aims to stabilize the power value chain, support financial viability for market participants, and encourage fresh private investment in domestic power generation.