Nigeria issues N729 bn bond to clear power sector debts and boost market coordination

Minister of Power Chief Joseph Tegbe called for greater harmonisation of regulatory and operational activities in the Nigerian Electricity Market, urging federal and state actors to focus on reliable supply over institutional rivalry. The Nigerian Electricity Regulatory Commission (NERC) backed the call, with Chairman Dr Musiliu Oseni saying, “Nigerians do not really care about who regulates what… they strongly care about the availability and reliability of supply.” He proposed more frequent, focused meetings of the National Council on Power with state commissioners to sustain dialogue during the market’s decentralisation.

The Federal Government is preparing a second capital‑market issuance of about N729 billion to settle verified legacy debts owed to electricity generation companies. The bond follows a N501 billion issue in January 2026, bringing the first‑phase total to roughly N1.23 trillion of the N4 trillion Presidential Power Sector Debt Reduction Programme. The proceeds are intended to restore liquidity, improve the financial position of market participants, and attract private investment into power generation.

Both initiatives aim to stabilise Nigeria’s power sector, enhance investor confidence, and expand reliable electricity access for citizens.