FG raises N1.23trn to tackle N4trn GenCos debt

The Federal Government has raised about N1.23 trillion through two bond issuances to tackle N4 trillion legacy debt owed to electricity generation companies (GenCos).

The Chief Executive Officer of the Nigerian Bulk Electricity Trading Plc (NBET), Akin Odeyemi, disclosed this during the ceremony in Abuja on Monday, September 14, 2026.

Odeyemi said the latest Series 2 issuance raised N728.9 billion, following N501 billion secured through Series 1 in January.

Odeyemi said Series 2, launched in August, involved 11 GenCos, compared with eight companies that participated in the first issuance.

According to him, the increased participation reflects growing stakeholder confidence in the debt reduction programme.

“The increased participation is a positive development and reflects the growing confidence of stakeholders in the programme,” Odeyemi said.

The NBET boss said the participation also demonstrated the programme’s ability to provide a credible framework for addressing verified outstanding obligations.

Odeyemi said the N728.9 billion Series 2 bond would be implemented in two tranches, identified as Tranches A and B.

Odeyemi stated that accumulated outstanding obligations had affected the ability of electricity market participants to meet their financial commitments.

The NBET boss said the debt burden had also constrained GenCos’ capacity to invest further in electricity generation.

“It is therefore important that the Debt Reduction Programme is viewed not simply as an initiative for settling historical debt,” he added.

Also speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Series 2 comprised N402 billion in cash bonds.

Oyedele said another N326.9 billion was allotted as non-cash bonds to participating GenCos under the Presidential Power Sector Debt Reduction Programme.

He said the transaction addressed accumulated legacy obligations that had weakened liquidity and constrained investment across the electricity market.

“This transaction addresses an important challenge in Nigeria’s electricity market, which is accumulated legacy obligations,” the minister added.

Oyedele said the federal government’s objective was to resolve legitimate legacy obligations through a structured and transparent process.

Tinubu warns regional commissions against wasteful projects

He stressed that the bond programme must be accompanied by reforms capable of preventing the recurrence of similar debts.

Oyedele called for stronger market discipline, improved revenue assurance and reductions in technical and commercial losses across the electricity sector.

Oyedele also advocated greater efficiency and accountability throughout the electricity ecosystem to strengthen the sustainability of the market.

The Minister of Power, Joseph Tegbe, said the bond issuance demonstrated the federal government’s commitment to addressing structural challenges confronting the electricity industry.

Tegbe, who was represented by the ministry’s Permanent Secretary, Mahmuda Mamman, added that the initiative formed part of efforts to create stable electricity supply.