The Federal Government has raised N728.979bn through the second issuance under its N4tn Power Sector Multi-Instrument Issuance Programme, bringing the total value of bonds issued under the first phase of the initiative to about N1.23tn.
The latest issuance is targeted at settling verified outstanding debts owed to electricity generation companies (GenCos), whose unpaid claims have weakened liquidity, constrained investment and undermined confidence 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 issuance was fully subscribed, with N300bn raised from the capital market and N201.021bn issued as non-cash bonds to participating GenCos.
Under the latest transaction, N402bn was raised through cash bonds from the capital market, while N326.979bn was issued as non-cash bonds 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 legacy obligations that had weakened the electricity market.
He said the programme would help resolve legitimate outstanding debts in a structured and transparent manner while supporting reforms aimed at preventing the recurrence of such obligations.
Oyedele stressed that the bond programme must be accompanied by reforms to create a financially sustainable electricity market.
According to him, the reforms must include stronger market discipline, improved revenue assurance, reduced technical and commercial losses, and greater efficiency and accountability across the electricity value chain.
The minister also said the government was leveraging the domestic capital market to address major economic challenges while deepening the financial system and mobilising long-term domestic capital.
He added that the success of the programme would not be measured by the amount of money raised, but by its impact on electricity supply and the ability of market participants to meet their obligations.
“Ultimately, the success of this program will not be measured by the amount or size of bond that we have issued. It will be measured by whether we achieve a financially sustainable electricity market that can attract investments, meet its obligations and deliver more reliable power to Nigerian households and businesses.”
The Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc (NBET), Akinola Odeyemi, said the Series 2 bond had an aggregate value of N728.979bn and would be implemented in two tranches, Tranche A and Tranche B.
He disclosed that 11 generation companies were participating in the second phase, compared with eight GenCos under Series 1.
Odeyemi said the increased participation reflected growing confidence in the programme and its ability to provide a credible framework for resolving verified outstanding obligations in the electricity sector.
He noted that accumulated unpaid obligations had affected the ability of market participants to meet their commitments and limited the capacity of GenCos to invest in expanding electricity generation.
He therefore urged stakeholders to view the debt reduction programme not merely as a mechanism for settling historical debts, but as part of a broader effort to restore financial confidence, liquidity and sustainability to Nigeria’s electricity supply industry.
The Special Adviser to the President on Energy, Olu Verheijen, said the first issuance had demonstrated the viability of the debt reduction model, while the second was designed to expand its impact.
She said Series 1 resulted in settlement agreements with 11 generation companies representing 21 power plants.
“Series 1 proved the model and Series 2 is scaling it. As important as it is, you would agree that scaling is what truly makes the difference.”
Verheijen said the two issuances had delivered more than N1.1tn under the N4tn ceiling approved by the Federal Government.
Meanwhile, Michael Nwezi of Cardinal Stone, the lead issuing house and financial adviser to the transaction, said the programme demonstrated what could be achieved when public-sector leadership and private-sector capital were aligned around a national objective.
He described the transaction as the largest fund issuance in the history of the Nigerian capital market, adding that the two series attracted a broad range of investors, including pension fund administrators, banks, sovereign wealth funds, asset managers, institutional investors and retail investors.
The N4tn Power Sector Multi-Instrument Issuance Programme was approved by the Federal Executive Council in August 2025 to address verified legacy obligations owed to power generation companies and gas suppliers.
The programme is designed to improve liquidity, strengthen investor confidence and support sustainable electricity generation by resolving unpaid claims accumulated over several years.
With the N501.021bn Series 1 and N728.979bn Series 2 issuances, the first phase of the programme now totals approximately N1.23tn.
The Federal Government has said its broader objective is to settle legitimate legacy debts while implementing reforms to improve revenue assurance, reduce technical and commercial losses, and prevent the recurrence of unpaid obligations across the electricity value chain.
