The federal government has launched a N729 billion Series 2 power sector bond as part of efforts to clear legacy debts and attract long-term investment into electricity.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the issuance on Tuesday at an investor forum in Abuja.
According to a statement by his press secretary, Maryann Duke, Oyedele said the bond is under the Presidential Power Sector Debt Reduction Programme.
The goal is to settle verified liabilities owed to generation companies, gas suppliers and other service providers, restore investor confidence, and strengthen the finances of the Nigerian Electricity Supply Industry.
He described the move as proof that the government is committed to market-based reforms that will improve cash flow across the power value chain.
Oyedele pointed to the success of the first tranche. The N501 billion Series 1 Bond was fully subscribed and has already made its first scheduled repayment.
“The first series proved that government keeps its commitments. Investors reward execution, not promises, and every commitment honoured today lowers the cost of capital tomorrow,” he said.
The second tranche will target outstanding payments to more GenCos and gas firms. The minister said this should lead to better plant availability, stronger market liquidity and more stable operations across the sector.
He added that reliable power remains critical for growth, industrialisation, digital transformation and job creation. “No nation has achieved sustained development without dependable power infrastructure,” he noted.
Oyedele also highlighted wider economic reforms under President Bola Ahmed Tinubu. He said Nigeria recorded 3.9% GDP growth in Q1 2026, and 11.2% growth in US dollar terms in 2025, which he linked to improving investor confidence.
On financing, he said public funds alone cannot cover Nigeria’s infrastructure gap. The government is therefore mobilising private capital through credible institutions and sound policies.
“Investments in this bond are investments not only in electricity, but also in productivity, industrial competitiveness, jobs and shared prosperity,” Oyedele said.
He reaffirmed government’s commitment to reforms that build confidence and make Nigeria more attractive to investors.
Also speaking at the forum, Special Adviser to the President on Energy, Olu Verheijen, said the federal government has already paid N333 billion in legacy debt to eight GenCos.
