FG unveils ₦729bn power bond to clear debts owed to GenCos, gas suppliers
The federal government has introduced a ₦729 billion Series 2 power sector bond as part of efforts to advance electricity sector reforms and attract long-term investment.
The announcement was made on Tuesday in Abuja by the minister of finance and coordinating minister of the economy, Taiwo Oyedele, during an investor forum held for the bond issuance.
In a statement issued by Maryann Duke, senior special assistant on communications and press secretary to the minister, Oyedele described the bond as a key step in implementing the Presidential Power Sector Debt Reduction Programme, which is designed to clear verified outstanding liabilities.
He said the initiative is intended to rebuild investor confidence while reinforcing the financial stability of the Nigerian Electricity Supply Industry (NESI).
According to Oyedele, the programme reflects the federal government’s commitment to meeting its obligations through transparent, market-driven reforms that improve liquidity across the electricity value chain and encourage long-term private sector investment.
The minister noted that the success of the reform agenda is already evident in the ₦501 billion Series 1 bond, which was fully subscribed and has recorded its first scheduled repayment.
“The first series proved that government keeps its commitments. Investors reward execution, not promises, and every commitment honoured today lowers the cost of capital tomorrow,” he said.
He explained that the second tranche will be used to pay verified debts owed to additional generation companies (GenCos), gas suppliers and service providers, a move expected to improve power plant operations, boost market liquidity and support greater stability in the sector.
Oyedele said dependable electricity is essential for economic expansion, industrial development, digital growth and job creation, stressing that lasting national development depends on reliable power infrastructure.
At the forum, the minister also outlined the Tinubu administration’s wider economic reforms aimed at improving fiscal sustainability, strengthening the investment climate and stabilising the economy.
He added that Nigeria posted 3.9 percent economic growth in the first quarter of 2026 and recorded 11.2 percent growth in US dollar terms in 2025, describing the figures as signs of improving macroeconomic conditions and rising investor confidence.
Oyedele said government funding alone is insufficient to meet the country’s infrastructure needs, making it necessary to attract long-term private investment through strong institutions, sound policies and innovative financing models.
He encouraged institutional investors to continue supporting government reforms aimed at strengthening the economy.
The minister said investing in the bond goes beyond financing electricity, as it also supports productivity, industrial competitiveness, employment and broader economic prosperity.
He reaffirmed the federal government’s resolve to continue implementing reforms that enhance investor confidence, strengthen institutions and make Nigeria a more attractive investment destination.
Also on Tuesday, Olu Verheijen, special adviser to the president on energy, announced that the federal government had paid ₦333 billion of the outstanding debts owed to eight electricity generation companies.
