FG Raises ₦1.23tn in Power Sector Bonds to Settle GenCos Debt
The Federal Government has raised ₦1.23 trillion through two bond issuances under its power sector debt reduction programme, aimed at settling legacy obligations owed to electricity Generation Companies (GenCos).
NBET CEO Akin Odeyemi said Series 2 raised ₦728.9bn in August, following ₦501bn secured in January’s Series 1. Participation expanded to 11 GenCos, up from eight, reflecting growing confidence in the initiative.
Odeyemi explained that the programme is not only about clearing arrears but also restoring liquidity and financial confidence across the Nigerian Electricity Supply Industry. Unpaid obligations had weakened GenCos’ finances and limited investment in new capacity.
Finance Minister Taiwo Oyedele said Series 2 included ₦402bn in cash bonds and ₦326.9bn in non-cash bonds. He stressed that debt settlement alone would not resolve the sector’s challenges, calling for stronger market discipline, reduced losses and improved accountability.
Power Minister Joseph Tegbe said the issuance demonstrated government commitment to addressing structural weaknesses in the industry. Presidential adviser Olu Verheijen noted that Series 1 covered 21 power plants, with Series 2 extending the framework further.
The Federal Executive Council had approved a ₦4tn Power Sector Debt Reduction Initiative after verifying outstanding liabilities. Claims were reduced to ₦3.3tn through validation. Under Series 1, ₦333bn was paid to eight GenCos, with the first coupon payment of ₦63.5bn made in July 2026.
Officials insist the bond strategy, though raising concerns about debt-for-debt risks, will stabilise the sector, enable GenCos to meet obligations to suppliers and lenders, and support long-term growth in Nigeria’s electricity market.