FG to Issue N729bn Bond for Power Sector Debt Relief
The Federal Government of Nigeria is preparing to issue a fresh N729 billion bond aimed at addressing part of the power sector's legacy debt, which currently totals N6.8 trillion. This initiative follows the approval of a second tranche of N701 billion, set to commence in July 2026, as confirmed by Joseph Tegbe, the Minister of Power.
Emili Yenvel, the Chief Financial Officer of the Nigerian Bulk Electricity Trading Plc (NBET), stated that this settlement is part of the Presidential Power Sector Debt Reduction Program (PPSDRP). The first tranche of N501 billion was previously approved, but the Association of Power Generation Companies (APGC) has expressed concerns over being excluded from the bond program.
Dr. Joi Ogaji, the CEO of APGC, criticized the government's negotiation process and the terms of the bond, which include a 50% haircut on invoices. The government plans to implement these settlements according to an approved framework, with the next reconciliation scheduled for March 2025.
Plus234Feed summary based on reporting from This Day. Read the original report below.
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