The Federal Government has raised N728.979bn through the second issuance under its N4tn Power Sector Multi-Instrument Issuance Programme, bringing the value of bonds issued under the first phase of the initiative to approximately N1.23tn.
The latest issuance is aimed at settling verified outstanding debts owed to electricity generation companies, whose unpaid claims have weakened liquidity and constrained investments across the power sector.
The Series 2 bond follows the successful completion of the inaugural N501.021bn Series 1 issuance in January 2026. The first bond recorded 100 per cent subscription, with N300bn raised from the capital market and N201.021bn issued as non-cash bonds to participating generation companies.
The latest transaction comprises N402bn in cash bonds raised from the capital market and N326.979bn in non-cash bonds allotted to participating GenCos under the Presidential Power Sector Debt Reduction Programme.
Speaking at the signing ceremony in Abuja on Monday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the transaction was designed to address the legacy obligations that had weakened the electricity market.
He said, “This transaction addresses an important challenge in Nigeria’s electricity markets, which is accumulated legacy obligations that have weakened liquidity, constrained investments, and affected confidence across the value chain.
“The federal government’s objective is to resolve legitimate legacy obligations in a structured and transparent manner, while implementing the reforms necessary to prevent their recurrence.”
