FG Issues N729bn Bond to Clear Power Sector Debts

The Federal Government of Nigeria has raised N729 billion through the issuance of a second bond to address verified legacy debts owed to electricity generation companies. This move is part of a broader strategy to restore liquidity in Nigeria's power sector and enhance investor confidence.

The bond issuance, scheduled to precede an investor forum on July 21, 2026, is expected to complete the first phase of the presidential power sector debt reduction program, bringing the total value of the first two bond issuances to N1.23 trillion. The first coupon principal repayment for the Series 1 bond was due on July 14, 2026, and was settled promptly, demonstrating the government's commitment to meeting its contractual obligations.

Johnson Akinnawo, the Chief Executive Officer of Nigerian Bulk Electricity Trade Plc, described the upcoming issuance as a significant milestone in the government's efforts to stabilize the power sector and attract new investments. The overall presidential power sector debt reduction program is valued at N4 trillion.