The Federal Government has raised approximately ₦728.9 billion through the Series 2 bond issuance under its ₦4 trillion Power Sector Multi-Instrument Issuance Programme, as part of efforts to resolve longstanding financial obligations in Nigeria’s electricity market.
The latest issuance brings the total amount raised under the programme to more than ₦1.1 trillion, according to government officials who spoke at the signing ceremony at Transcorp in Abuja on Monday.
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The Series 2 transaction comprises ₦402 billion in cash bonds raised from the capital market and ₦326.979 billion in non-cash bonds allotted to participating electricity generation companies (GenCos).
Speaking at the ceremony, the Managing Director and Chief Executive Officer of the Nigerian Bulk Electricity Trading (NBET), Akin Odeyemi, said the transaction represented another milestone in the Federal Government’s efforts to address the financial challenges confronting the electricity supply industry.
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He said the Series 2 issuance was launched in August 2026 and involved 11 generation companies, compared with eight companies that participated in Series 1.
“The Series 2 issue has an aggregate value of approximately ₦729 billion and will be implemented in two tranches, Tranche A and B,” Mr Odeyemi said.
He said the increased participation reflected growing confidence among stakeholders in the programme as a credible mechanism for addressing verified outstanding obligations in the power sector.
Debt reduction
The Federal Government established the ₦4 trillion Power Sector Debt Reduction Programme to settle verified legacy debts owed to generation companies and other stakeholders while restoring liquidity and investor confidence in the electricity market.
Series 1 of the programme was completed in January 2026 with an issuance of ₦501 billion and the participation of eight generation companies.
The Special Adviser to the President on Energy, Olu Verheijen, who was represented by the team lead of her office, said that Series 1 had demonstrated the programme’s viability. At the same time, Series 2 was designed to scale up the intervention.
“Series 1 proved the model, and Series 2 is scaling it,” Ms Verheijen said.
She said the government had executed settlement agreements with 11 generation companies representing 21 power plants.
According to her, the programme was designed to address a decade-long accumulation of unpaid and unverified obligations to generation companies and gas suppliers.
She said the Federal Executive Council had approved issuing up to ₦4 trillion in government-backed bonds to settle verified obligations.
Ms Verheijen described the intervention as the largest of its kind in the power sector in more than a decade.
‘Bond alone cannot solve power sector problems’
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the bond programme was only one component of the broader reforms required to restore financial sustainability to Nigeria’s electricity market.
He said the accumulated legacy obligations had weakened liquidity, constrained investment and affected confidence across the electricity 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,” Mr Oyedele said.
He said the bond programme must be accompanied by stronger market discipline, improved revenue assurance, reduced technical and commercial losses, greater efficiency and accountability across the electricity ecosystem.
According to him, the ultimate measure of the programme’s success would not be the amount of bonds issued but whether it helps create a financially sustainable electricity market capable of attracting investment, meeting its obligations and delivering more reliable electricity to households and businesses.
“This demonstrates how the government can use appropriate market instruments to address significant economic challenges, while deepening our financial markets and mobilising long-term domestic capital,” he said.
Mr Oyedele commended NBET, participating generation companies, investors, advisers, regulators and other institutions involved in the transaction.
The government targets more reliable electricity
Representing the Minister of Power, Joseph Tegbe, the Permanent Secretary in the ministry, Mahmuda Mamman, said the bond issuance demonstrated the Federal Government’s commitment to addressing the structural challenges facing the electricity industry.
He said the initiative was part of efforts to create a stable electricity supply and lay the foundation for sustainable development.
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Mr Mamman congratulated NBET and other stakeholders involved in the transaction, saying the intervention would help provide the foundation required for a more stable power sector.
Ms Verheijen said the government’s broader objective was to move the electricity sector “from debt and dysfunction to delivery and discipline.”
She said the government expected the intervention, alongside other power-sector reforms, to generate fresh investment and ultimately improve electricity supply.
“The last mile of what we are doing here belongs to millions of homes, offices and industries across Nigeria who will enjoy more reliable electricity because of this bond programme and other associated reforms,” she said.
She added that the bond programme would feature prominently in the history of the government’s efforts to reset Nigeria’s power sector.
Mr Odeyemi said NBET would continue working with government institutions, financial institutions, generation companies and other stakeholders to develop sustainable financial solutions for the sector.
He said the objective was to restore liquidity, financial sustainability and confidence across Nigeria’s electricity market.
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