FG Plans N729 Billion Power Bond to Reduce Gencos' Debt

The Federal Government of Nigeria is set to meet with investors to discuss the issuance of a second bond valued at approximately N729 billion, aimed at reducing debts in the power sector under the Presidential Power Sector Debt Reduction Program (PPSDRP). This initiative follows the successful flotation of a N501 billion bond in January 2026, bringing the total to N1.23 trillion for the first phase of a broader N4 trillion debt reduction program approved by President Bola Tinubu.

The Nigerian Bulk Electricity Trading Plc (NBET) confirmed that the first coupon payment for the January bond was settled in full by July 14, demonstrating the government's commitment to meet its contractual obligations. NBET's Chief Executive Officer, Johnson Akinnawo, described the proposed bond issuance as a significant milestone in restoring financial stability in the sector, which is crucial for attracting new investments and improving liquidity across the electricity value chain.