FG Launches N729bn Bond to Address Power Sector Debts

The Nigerian government, through the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has introduced a N729 billion Series 2 bond as part of the Presidential Power Sector Debt Reduction Programme. This initiative is designed to resolve verified legacy liabilities within the power sector and restore investor confidence in the Nigerian Electricity Supply Industry (NESI).

During an investor forum in Abuja, Oyedele highlighted that the bond issuance is a strategic milestone, following the successful execution of the N501 billion Series 1 bond, which was fully subscribed and has already seen its first scheduled repayment. The second tranche will facilitate the settlement of verified obligations to generation companies (GenCos), gas suppliers, and service providers, thereby improving plant availability and market liquidity.

Oyedele emphasized that reliable electricity is crucial for economic growth and called for continued investor partnership to stabilize the economy and attract long-term capital.