The Federal Government is preparing to issue a second bond valued at about N729 billion under the Presidential Power Sector Debt Reduction Programme (PPSDRP) as part of efforts to settle verified legacy debts owed to electricity Generation Companies (Gencos) and improve liquidity in the Nigerian Electricity Supply Industry (NESI).
Ahead of the bond issuance, the government will host an investors’ forum on Tuesday, July 21, to engage prospective investors and provide details of the transaction.
The planned issuance follows the successful launch of a N501 billion bond in January 2026. Combined, the two bonds will raise approximately N1.23 trillion, completing the first phase of the N4 trillion debt reduction programme approved by President Bola Tinubu to address long-standing financial obligations in the power sector.
In a statement issued in Abuja, the Nigerian Bulk Electricity Trading Plc (NBET) disclosed that the first coupon payment and principal repayment on the January bond, which matured on July 14, were settled in full and on schedule.
According to NBET, the timely repayment reflects the Federal Government’s commitment to honouring its financial obligations while reinforcing investor confidence in the programme.
The agency explained that the N1.23 trillion to be raised through the first two bond issuances represents Series 1 and Series 2 of the Capital Market Multi-Instrument Issuance Programme, which forms the opening phase of the broader N4 trillion initiative.
NBET noted that the January bond demonstrated the government’s market-driven and fiscally responsible approach to clearing verified debts owed to Gencos, improving liquidity and supporting the long-term sustainability of the electricity market.
Speaking on the planned issuance, NBET Managing Director and Chief Executive Officer, Johnson Akinnawo, described the second bond as another significant milestone in the government’s efforts to restore financial stability and investor confidence in the power sector.
He said the issuance underscores the government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based financing mechanism.
Akinnawo added that strengthening liquidity across the electricity value chain would improve the financial health of industry participants, encourage fresh investments and support sustainable power generation.
He recalled that the Federal Executive Council (FEC) approved the establishment of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET designated as the sponsoring institution responsible for settling verified legacy debts.
According to him, the programme will be implemented through multiple debt issuances by NBET Finance Company Plc, a special purpose vehicle established for the initiative.
He further explained that the debt instruments are backed by the full faith and credit of the Federal Government and supported by a comprehensive risk mitigation framework to ensure successful execution.
Akinnawo said the proposed N729 billion bond represents another key step towards resolving long-standing liabilities in the electricity sector and creating a more stable, bankable and investment-friendly electricity market.
He maintained that improving liquidity across the power value chain would strengthen market participants, attract new investment and promote sustainable electricity generation for the benefit of Nigerians.