GenCos debt: FG to issue fresh ₦729bn bond next week

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. The January 2026 issuance formed part of the Federal Government’s fiscally responsible approach to settling verified obligations to GenCos, improving sector liquidity and strengthening the financial sustainability of the Nigerian Electricity Supply Industry (NESI). Akinnawo described the forthcoming issuance as another significant milestone in the Federal Government’s efforts to restore liquidity, reinforce investor confidence and promote the long-term stability of the power sector. Other News Refugee commission to conduct psychological assessment of South Africa returnees SSCE: We are closer to full transition to CBT, says FG FG launches three digital platforms to modernise public service, boost transparency and accountability “The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism. “By improving liquidity across the electricity value chain, the programme will help strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” Akinnawo said. NBET recalled that the Federal Executive Council (FEC) approved the establishment of the ₦4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET designated as the sponsoring institution for the settlement of verified legacy debts in the sector. He explained that the approved framework provides for the programme to be implemented through multiple issuances of debt instruments by NBET Finance Company Plc, a special-purpose vehicle established for the programme. The instruments are backed by the full faith and credit of the Federal Government of Nigeria and supported by a comprehensive package of risk-mitigation measures. “The programme has the full backing of the Federal Government and incorporates a robust suite of instruments designed to mitigate transaction risks and support successful execution,” he said. Akinnawo added that the issuance of the approximately ₦729 billion second bond would represent a decisive step towards resolving longstanding financial obligations and establishing a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth. Tags: