Nigeria Raises ₦729 Billion to Settle Power Sector Debts

The Government of Nigeria raised approximately ₦728.9 billion through the Series 2 issuance of its ₦4 trillion Power Sector Multi-Instrument Issuance Programme. Formalized during a signing ceremony in Abuja on September 14, 2026, the transaction comprises ₦402 billion in cash bonds from the domestic capital market and ₦326.979 billion in non-cash bonds allotted to 11 electricity generation companies representing 21 power plants.

This issuance follows a Series 1 issuance of ₦501.021 billion in January 2026, bringing the total funds mobilized under the debt reduction programme to approximately ₦1.23 trillion. Participation expanded in the second phase, with 11 generation companies joining compared to eight in the first series.

The initiative seeks to resolve a decade of verified legacy obligations owed to generation companies and gas suppliers to restore liquidity and investor confidence. Finance Minister Taiwo Oyedele stated that the bond programme cannot stand alone and must be paired with structural reforms, including improved revenue assurance and reduced technical losses, to prevent the recurrence of debt. Officials described the program as a means to restore financial sustainability and market discipline to the Nigerian electricity supply industry.