Nigeria to Issue N729bn Power Debt Bond for Stability

The Federal Government of Nigeria is set to issue a second power debt bond valued at N729 billion, which will complete the first phase of the presidential power sector debt reduction program. This follows the successful issuance of approximately N501 billion in January 2026.

The first coupon and principal repayment for the Series 1 bond, which fell due on July 14, 2026, was paid promptly in full, underscoring the federal government's creditworthiness and commitment to contractual obligations. Johnson Akinnawo, CEO of the Nigerian Bulk Electricity Trading PLC (NBET), described the forthcoming issuance as a significant milestone in the federal government's efforts to restore liquidity, reinforce investor confidence, and promote long-term stability in the power sector.

The two issuances will total N1.23 trillion, representing the first phase of a broader N4 trillion program approved by President Bola Ahmed Tinubu, GCFR, aimed at addressing legacy financial obligations in Nigeria's electricity sector.