FG plans N729 billion bond to clear more power-sector legacy debt
The second issuance would complete the first phase of a programme designed to restore liquidity and confidence among electricity generators.
The federal government prepared a second bond of about N729 billion to settle verified legacy debts owed to electricity generation companies under the Presidential Power Sector Debt Reduction Programme.
Nigerian Bulk Electricity Trading said the issuance would complete the first phase of the programme after a N501 billion inaugural bond in January. By the July investor forum, about N333 billion had been paid to eight participating generators covering 17 plants.
Why the arrears matter
Unpaid invoices weaken generators' ability to buy gas, maintain equipment and service bank loans. They also raise the risk premium for new investment across a market where tariffs, collections and government support remain closely linked.
A bond converts part of the arrears into a scheduled sovereign-backed obligation, improving visibility for creditors. It does not by itself fix the gap between electricity supplied and cash collected, so lasting stability still depends on metering, loss reduction and cost-reflective market discipline.
Sources
Nigerian Bulk Electricity Trading statement and July 2026 investor forum; TheCable, “FG plans N729bn bond issuance to settle GenCos' debt” (20 July 2026).
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About the author
Musa Abdullahi
Finance Correspondent
Musa Abdullahi writes for BusinessPress.
