FG Issues ₦729bn Bond to Clear GenCos’ Legacy Debts

FG Issues ₦729bn Bond to Clear GenCos’ Legacy Debts

The Federal Government has announced plans to issue a ₦729 billion bond to settle verified legacy debts owed to electricity generation companies (GenCos), in a bid to restore liquidity in Nigeria’s power sector and boost investor confidence.According to a statement by the Nigerian Bulk Electricity Trading Plc (NBET), the issuance scheduled to follow an Investors’ Forum on July 21, 2026 marks the second under the Presidential Power Sector Debt Reduction Programme. Together with the ₦501bn released in January 2026, the total value of the first two issuances will reach about ₦1.23 trillion.NBET confirmed that the first coupon and principal repayment on the Series 1 bond, which matured on July 14, 2026, was settled in full, underscoring the government’s commitment to meeting its obligations.Chief Executive Officer of NBET, Johnson Akinnawo, described the upcoming issuance as a milestone in efforts to stabilize the electricity market.“The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured, and market-based mechanism,” Akinnawo said.He explained that the bonds form part of the ₦4 trillion Presidential Power Sector Debt Reduction Programme, approved in 2025, and implemented through NBET Finance Company Plc, a special purpose vehicle backed by the Federal Government.The programme is designed to strengthen liquidity across the electricity value chain, attract new investments, and ensure sustainable power generation for Nigerians.Akinnawo added that the issuance of the ₦729bn bond represents a decisive step toward resolving longstanding financial obligations that have weighed on the sector for years, while creating a more stable and bankable electricity market capable of supporting Nigeria’s economic growth.

Source: FG Issues ₦729bn Bond to Clear GenCos’ Legacy Debts

 - NigerianEye

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