FG to Raise N729bn Power Bond Starting August 3

On August 3, the Federal Government will initiate the second tranche of its Power Sector Multi-Instrument Issuance Programme, aiming to raise approximately N729bn to alleviate legacy debts in Nigeria's electricity industry. The bond offer, managed by CardinalStone Partners, will close on August 14 and is expected to achieve funding by August 24, pending regulatory approvals.

This issuance follows the successful N501bn raised in the first series, with the first coupon payment of about N63.5bn made on schedule, enhancing investor confidence. Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated that the electricity sector has faced years of underinvestment due to liquidity shortages and tariff shortfalls.

President Bola Tinubu established the Presidential Power Sector Debt Reduction Committee to verify liabilities, which led to a reduction of eligible liabilities from N4tn to approximately N3.3tn after a detailed verification process. The first series of lease-based issuance closed in January 2026, successfully paying all participating generation companies.