Nigeria Issues N729 Billion Bond to Settle Power Debts

The Government of Nigeria issued a N729 billion bond on July 21, 2026, to settle verified legacy debts owed to electricity generation companies. This issuance follows a N501 billion Series 1 bond released in January 2026, bringing the total funds raised to N1.23 trillion. The two transactions complete the first phase of the N4 trillion Presidential Power Sector Debt Reduction Programme approved by President Bola Ahmed Tinubu.

Managed by the Nigerian Bulk Electricity Trading Plc (NBET) through a special purpose vehicle, NBET Finance Company Plc, the program aims to restore liquidity and financial stability to the Nigerian Electricity Supply Industry. Finance Minister Taiwo Oyedele reported that a verification exercise reduced outstanding claims from over N4 trillion to approximately N3.3 trillion. The government has already paid N333 billion to eight generation companies covering 17 power plants and completed a N63.5 billion coupon payment on July 14, 2026.

Following an investors' forum in Abuja, officials emphasized the shift toward a commercially viable, investment-grade power sector. The initiative is designed to enable generation companies to pay their gas suppliers and lenders, thereby improving the overall financial position of market participants and promoting sustainable electricity generation.