FG Seeks N729 Billion Power Bond After N501 Billion Success

The Federal Government of Nigeria is intensifying efforts to raise N729 billion from the capital market to improve liquidity in the power sector, following the successful issuance of N501 billion earlier this year. This announcement was made at the Project Hoover Series II Investor Forum in Abuja, attended by key officials including Minister of Power Joseph Tegbe, Minister of Finance Taiwo Oyedele, and Special Adviser to the President on Energy Olu Verheijen.

Oyedele stated that the bond program is a proven model for attracting long-term capital into critical infrastructure, noting that the previous issuance was fully subscribed and met its repayment obligations. He highlighted challenges such as tariff shortfalls and debts to generation companies that have hindered investment in the electricity sector.

In July 2024, President Bola Tinubu approved a review of power sector liabilities, leading to the establishment of the Presidential Power Sector Debt Reduction Committee. The government aims to replicate this financing model across other sectors, emphasizing the need for private capital to support infrastructure investment.