GenCos debt: FG to issue fresh ₦729bn bond next week
The Nigerian government plans to issue a ₦729 billion bond next week to settle legacy debts owed to electricity generation companies. This move completes the first phase of a ₦4 trillion debt reduction program aimed at stabilizing the power sector.
Why it matters
Addressing the liquidity crisis in the power sector is essential for improving electricity supply and investor confidence in Nigeria's infrastructure.
As part of plans to complete the first phase of the ₦4 trillion Presidential Power Sector Debt Reduction Programme, the Federal Government will next week issue a second bond valued at ₦729 billion for the settlement of verified legacy debts owed to electricity generation companies (GenCos). The proposed issuance will complete the first phase of the Presidential Power Sector Debt Reduction Programme, following the successful issuance of approximately ₦501 billion in January 2026. Together, the two issuances constitute the ₦1.23 trillion Series 1 and 2 component of the Capital Market Multi-Instrument Issuance Programme. In a statement, the Chief Executive Officer (CEO) of the Nigerian Bulk Electricity Trading Plc (NBET), Mr Johnson Akinnawo, said the bond represents the first phase of the broader ₦4 trillion programme approved by President Bola Ahmed Tinubu to address legacy financial obligations in Nigeria’s electricity sector.
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