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By Victor Osula, Abuja
The federal government has raised $1.23 trillion through two bond issues under the President’s Energy Sector Debt Relief Program as it moves to pay off audited legacy obligations to electric power generation companies (GenCos).
The Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), Akin Odeyemi, disclosed this in Abuja, saying that through the inaugural series in January, $501 billion was raised, while the second series raised $728.9 billion.
The Series 2 issuance, launched in August, attracted 11 GenCos, compared to eight participants in the first transaction.
Odeyemi said the increased participation reflects growing confidence in the debt relief programme, adding that the $728.9 billion raised under Series 2 will be implemented across two tranches.
It said the accumulated unpaid obligations have weakened the finances of electricity market participants and limited the ability of GenCos to invest in additional generation capacity.
According to him, the program is therefore intended not only to erase historical liabilities, but also to restore liquidity and confidence across the entire Nigerian electricity supply sector.
Finance Minister and Coordinating Minister for Economy, Taiwo Oyedele, said the second series comprises $402 billion in cash bonds and $326.9 billion in non-cash bonds allocated to participating GenCos.
It said the transaction was designed to address accumulated obligations that have weakened liquidity across the electricity value chain.
Oyedele, however, said debt settlement would not in itself solve the sector’s financial problems.
“This means the bond program cannot stand alone,” he said, calling for stronger market discipline, better revenue assurance, lower technical and commercial losses and greater accountability across the electricity ecosystem.
He said the federal government is using the domestic capital market to address legitimate legacy obligations through a structured and transparent process.
Energy Minister Joseph Tegbe, represented by Permanent Secretary Mahmuda Mamman, said the issuance demonstrates government’s commitment to addressing structural weaknesses in the electricity sector.
According to him, strengthening the financial position of the sector would help create conditions for a more stable electricity supply.
President Bola Tinubu’s Special Adviser on Oil and Gas, Olu Verheijen, said the first series led to settlement agreements with 11 GenCos covering 21 power plants, while the second series would extend the debt relief framework.
The Federal Executive Council has approved the N4tn energy sector debt relief initiative after the government conducted a thorough review of outstanding liabilities.
The exercise reduced compensation claims from over N4tn to around N3.3tn through line-by-line validation of services rendered.
Under the first round, $333 billion has been paid so far to eight GenCos covering 17 power plants. The government also made the first coupon payment of approximately 63.5 billion naira on the seven-year bond on July 14, 2026.
The government said the timely agreement enabled participating GenCos to fulfill obligations to gas suppliers, financiers and operations and maintenance contractors.
The second issuance is expected to extend payments to more participants along the electricity value chain, although officials say sustainable financing of the sector will ultimately depend on stronger revenue collection and improved operational efficiency.
