The Federal Government has announced plans to issue a second bond worth approximately N729 billion to settle verified legacy debts owed to electricity generation companies (GenCos), as part of ongoing efforts to strengthen Nigeria's power sector.
The Nigerian Bulk Electricity Trading (NBET) Plc disclosed this in a statement on Monday, saying the proposed bond issuance will complete the first phase of the Presidential Power Sector Debt Reduction Programme (PPSDRP).
The planned issuance follows the successful launch of a N501 billion inaugural bond under the programme in January 2026.
As part of preparations for the exercise, the Federal Government will host an investors' forum on July 21 to engage stakeholders ahead of the second bond issuance.
NBET said the prompt and full repayment of the first coupon and principal on the Series 1 bond, which fell due on July 14, 2026, demonstrates the government's commitment to honouring its financial obligations and reinforces investor confidence in the programme.
"Notably, the first coupon and principal repayment on the Series 1 bond fell due on 14 July 2026 and was paid promptly and in full, underscoring the Federal Government's creditworthiness, its unwavering commitment to contractual obligations, and the reliability of income to investors under the programme—a track record expected to further reinforce market confidence ahead of the second issuance," the agency stated.
According to NBET, the two bond issuances will amount to N1.23 trillion, representing the Series 1 and Series 2 components of the Capital Market Multi-Instrument Issuance Programme.
The agency added that this forms the first phase of the broader N4 trillion debt reduction programme approved by President Bola Ahmed Tinubu to resolve longstanding financial obligations in Nigeria's electricity sector.
NBET explained that the January 2026 bond issuance was designed to improve liquidity across the Nigerian Electricity Supply Industry (NESI) and enhance the financial sustainability of the country's power market.
Speaking on the development, NBET's Managing Director and Chief Executive Officer, Johnson Akinnawo, described the upcoming bond issuance as another major milestone in the Federal Government's drive to restore long-term stability to the power sector.
He said the initiative reflects the government's commitment to settling verified legacy debts through a transparent, structured, and market-based financing framework.
According to Akinnawo, increasing liquidity across the electricity value chain will strengthen the financial health of industry participants, attract fresh investment, and support sustainable electricity generation across the country.
He further disclosed 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.
Akinnawo explained that the programme will be executed through multiple debt issuances by NBET Finance Company Plc, a special-purpose vehicle established specifically for the initiative.
He added that the debt instruments are backed by the full faith and credit of the Federal Government and supported by a comprehensive risk-mitigation framework designed to ensure successful execution.
"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 noted that the planned N729 billion bond issuance represents another significant step toward building a more stable, bankable, and investment-friendly electricity market capable of supporting Nigeria's long-term economic growth.
