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The Federal Government has initiated steps to issue a second bond worth about N729 billion to offset verified debts owed to power generation companies (GenCos.
This was announced in a statement on Sunday by Nigerian Bulk Electricity Trading Plc, which said the latest bond issuance follows the successful release of about N501 billion in January 2026 under a program approved by President Bola Tinubu.
The planned issuance, which will be preceded by an Investor Forum scheduled for Tuesday, July 21, 2026, will complete the first phase of the President’s Power Sector Debt Reduction Program, bringing the total value of the first two bond issuances to about N1.23tn.
Based on this statement, the first coupon and principal payment for the Series 1 bonds is due on July 14 2026, and has been paid immediately and in full.
It was explained that the two issuances represent the N1.23tn Series 1 and Series 2 components of the Capital Markets Multi-Instrument Issuance Program, which is the first phase of the broader N4tn Presidential Power Sector Debt Reduction Program approved by the President to address long-term financial liabilities in Nigeria’s power sector.
The statement noted that the issuance in January 2026 is part of the federal government’s fiscally responsible strategy to settle verified obligations owed to power generation companies, increase liquidity across Nigeria’s electricity supply industry and strengthen the financial sustainability of the sector.
Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, Johnson Akinnawo, said:
“This second publication demonstrates the Federal Government’s commitment to resolving verified legacy obligations through transparent, structured and market-based mechanisms.
“By increasing liquidity across the electricity value chain, this program will help strengthen the financial position of market players, support new investments and encourage sustainable electricity generation for the benefit of Nigerians,” Aknnawo said.
Akinnawo recalled that the Federal Executive Council approved the establishment of the N4tn Presidential Power Sector Debt Reduction Program in 2025, with Nigerian Bulk Electricity Trading Plc appointed as the sponsoring agency for verified legacy debt resolution in the power sector.
He explained that the approved framework provides that the program will be implemented through the issuance of various debt instruments by NBET Finance Company Plc, a special purpose institution established specifically for the program.
“This program has the full support of the Federal Government and incorporates a robust suite of instruments designed to mitigate transaction risks and support successful implementation,” he said.
He added, “The issuance of the second bond worth N729 billion will represent a firm step towards resolving long-term financial obligations and building a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth.”
