Nigeria raises ₦728.9bn bond to settle power sector debts

The Nigerian Federal Government has raised ₦728.9 billion through the second series of its power sector debt reduction programme. This issuance is part of a broader ₦4 trillion initiative designed to settle verified legacy obligations within the electricity market.

The Series 2 bond comprises ₦402 billion in cash bonds raised from the domestic capital market and ₦326.9 billion in non-cash bonds allotted to 11 participating electricity generation companies. This follows a ₦501 billion Series 1 issuance in January 2026, bringing the total value of bonds issued under this phase to approximately ₦1.23 trillion.

Minister of Finance Taiwo Oyedele stated that while the transaction aims to restore liquidity and investor confidence, debt settlement must be accompanied by structural reforms. These reforms are intended to improve market discipline, revenue assurance, and efficiency to prevent the accumulation of new liabilities within the electricity value chain.