FG signs N729bn Series-2 bond agreement with GenCos

n n

By Folarin Kehinde, Abuja

n

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.

n

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.

n

Speaking at the signing ceremony in Abuja, the Managing Director and Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, NBET, Mr. 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.

n

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.

n

He noted that the Series-2 issuance, launched in August 2026, involved 11 generation companies, up from eight companies that participated in Series-1.

n

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.

n

“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.

n

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.

n

According to him, the bond programme cannot succeed on its own without improvements in market policy, revenue assurance, reduction in technical and commercial losses, efficiency and accountability across the electricity ecosystem.

n

The Minister also said the transaction demonstrated the ability of the Federal Government to use Nigeria’s domestic capital market to address major economic challenges while mobilising long-term domestic capital.

n

Oyedele warned, however, that the success of the programme should not be measured merely by the volume of bonds issued.

n

The Senior Special Adviser to the President on Energy, Olu Verheijen, who was represented at the event by Iriye Onaguruwa, said Series-2 marked a major expansion of the Presidential Power Sector Financial Reform Programme.

n n