Electricity grid
The Federal Government has raised approximately ₦1.23 trillion through two bond issuances to clear part of the ₦4 trillion legacy debt owed to electricity Generation Companies (GenCos).
Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc (NBET), Mr. Akin Odeyemi, announced the milestone on Monday in Abuja.
He revealed that the latest Series 2 bond issuance raised ₦728.9 billion, building on the ₦501 billion secured during the Series 1 issuance in January.
Series 2, launched in August, saw participation from 11 GenCos up from eight in the first phase, which Odeyemi described as a sign of growing stakeholder confidence in the framework.
“The increased participation is a positive development and reflects the growing confidence of stakeholders in the programme,” Odeyemi stated. He added that the ₦728.9 billion Series 2 bond will be executed in two tranches (A and B).
Odeyemi noted that accumulated legacy debts have severely strained market liquidity and restricted GenCos from expanding generation capacity.
He emphasized that the initiative goes beyond settling historical liabilities, serving as part of broader efforts to restore financial health and sustainability to the Nigerian Electricity Supply Industry.
Providing a breakdown of Series 2, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, explained that it comprises ₦402 billion in cash bonds and ₦326.9 billion allotted as non-cash bonds under the Presidential Power Sector Debt Reduction Programme.
Oyedele underscored that while domestic capital markets are being leveraged to resolve legitimate claims transparently, the debt reduction initiative cannot stand alone.
“This transaction addresses an important challenge in Nigeria’s electricity market but the bond programme must be accompanied by reforms capable of preventing the recurrence of similar debts,” Oyedele stressed, advocating for stronger market discipline, improved revenue assurance, reduced technical and commercial losses, and greater operational efficiency.
Echoing these views, the Minister of Power, Mr. Joseph Tegbe, represented by Permanent Secretary Mahmuda Mamman stated that the intervention demonstrates the administration’s commitment to resolving structural hurdles and building a stable power sector for sustainable development.
Special Adviser to President Bola Tinubu on Oil and Gas, Mrs. Olu Verheijen, highlighted that Series 1 established settlement agreements with 11 GenCos representing 21 power plants.
“Series 1 proved the model and Series 2 is scaling it,” Verheijen remarked, stressing that scaling the programme is vital to achieving meaningful, industry-wide impact.
