By Seun Ibiyemi
The Federal Government has raised about ₦1.23 trillion through two bond issuances under its Presidential Power Sector Debt Reduction Programme to address the estimated ₦4 trillion legacy debt owed to electricity Generation Companies (GenCos).
The Chief Executive Officer of Nigerian Bulk Electricity Trading Plc (NBET), Akin Odeyemi, disclosed this on Monday in Abuja during a ceremony marking the implementation of the programme.
Odeyemi said the second series of the bond issuance raised ₦728.9 billion, following the ₦501 billion secured through Series 1 in January.
According to him, participation increased in the second issuance, with 11 GenCos taking part compared with eight companies in the first series.
He said the increased participation reflected growing confidence in the Federal Government’s debt reduction programme and its ability to provide a credible framework for settling verified outstanding obligations.
Odeyemi said the Series 2 bond, launched in August, would be implemented in two tranches identified as Tranches A and B.
He explained that accumulated debts had weakened the financial position of participants in the electricity market and constrained GenCos’ ability to invest in additional generation capacity.
The NBET chief executive said the debt reduction programme should therefore not be viewed merely as an exercise to settle historical obligations.
Rather, he said, it should help restore financial confidence, liquidity and sustainability across the Nigerian Electricity Supply Industry.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Series 2 issuance comprised ₦402 billion in cash bonds and ₦326.9 billion in non-cash bonds allocated to participating GenCos.
Oyedele said the transaction was designed to address accumulated legacy obligations that had weakened liquidity and undermined confidence across the electricity value chain.
He, however, stressed that settling the debt alone would not solve the sector’s financial challenges.
“The bond programme cannot stand alone,” he said, calling for stronger market discipline, improved revenue assurance and reductions in technical and commercial losses.
The minister also advocated greater efficiency and accountability across the electricity value chain, while stressing the importance of using Nigeria’s domestic capital market to support the sector.
The Minister of Power, Joseph Tegbe, said the bond issuance demonstrated the Federal Government’s commitment to addressing structural challenges in the electricity industry.
Represented by the ministry’s Permanent Secretary, Mahmuda Mamman, Tegbe said the programme would help strengthen the financial position of the power sector and support efforts to achieve more stable electricity supply.
He added that resolving the sector’s financial challenges would provide a stronger foundation for sustainable development.
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The Special Adviser to President Bola Tinubu on Oil and Gas, Olu Verheijen, said Series 1 resulted in settlement agreements with 11 GenCos representing 21 power plants.
She said Series 2 would deepen and expand implementation of the debt reduction programme.
According to Verheijen, the first series demonstrated that the debt settlement model was viable, while the second series was designed to scale up its impact.
She stressed that expanding the programme would be critical to achieving meaningful improvements across Nigeria’s electricity market.
