FG Issues N501bn Bond to Resolve Power Sector Crisis

The Federal Government of Nigeria has floated a N501.02 billion bond, marking a crucial step towards addressing the prolonged liquidity crisis in the power sector. Adebayo Adelabu, the Minister of Power, stated that this bond issuance is part of a broader N4 trillion presidential power sector debt reduction program approved by President Bola Tinubu.

The bond aims to tackle the N6 trillion cumulative debt burden that has crippled the sector and is designed to shift from ad hoc interventions to market-driven solutions. The proceeds from the bond are expected to settle legacy debts, restore gas supply, and improve plant maintenance, which are essential for boosting electricity generation.

Adelabu emphasized that the bond issuance is central to restoring confidence and unlocking growth across the electricity value chain. The initiative also aligns with ongoing tariff adjustments and aims to achieve full commercialization of the sector, addressing structural inefficiencies and enhancing the investment climate.