The Federal Government is preparing to release a second bond worth about N729 billion to pay verified outstanding debts owed to electricity generation companies across Nigeria. The move is part of ongoing efforts to improve the financial health of the country’s power sector and encourage more investment.
Before the bond is issued, the government will hold an Investors’ Forum on Tuesday, July 21, 2026, to engage investors and provide details about the programme. Once the second bond is released, the total value of the first two bond issuances under the initiative will rise to about N1.23 trillion.
The Nigerian Bulk Electricity Trading Plc (NBET) announced the development in a statement released on Sunday. The agency explained that the second bond follows the successful issuance of about N501 billion in January 2026. That first bond was part of the Federal Government’s plan to reduce long-standing debts in the electricity sector.
NBET also revealed that the first repayment, including both the principal and interest on the first bond, was made on July 14, 2026, without any delay. According to the agency, this timely payment shows the government’s commitment to honouring its financial obligations and strengthens the confidence of investors ahead of the second bond issuance.
The first and second bond issuances are part of the Series 1 and Series 2 phases of the government’s Capital Market Multi-Instrument Issuance Programme. They form the first stage of the larger N4 trillion Presidential Power Sector Debt Reduction Programme, which was approved by President Bola Tinubu to clear verified debts in Nigeria’s electricity industry.
The government believes that settling these debts will improve cash flow across the electricity value chain. Better liquidity is expected to help electricity generation companies operate more efficiently, encourage fresh investments, and improve the long-term stability of the power sector.
Speaking on the planned bond issuance, NBET’s Chief Executive Officer, Johnson Akinnawo, described it as another important step towards restoring confidence in Nigeria’s electricity market. He said the government remains committed to using a transparent and market-based system to settle verified legacy debts.
Akinnawo explained that improving liquidity in the power sector would strengthen the financial position of companies operating in the industry. He added that the programme would also create a more attractive environment for investors, leading to increased electricity generation and better service delivery for Nigerians.
He recalled that the Federal Executive Council (FEC) approved the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025. Under the arrangement, NBET was appointed as the institution responsible for overseeing the settlement of verified debts owed to electricity generation companies.
According to him, the programme will be implemented through several debt instrument issuances by NBET Finance Company Plc, a special purpose company created specifically for the initiative. He noted that these debt instruments are fully backed by the Federal Government and supported by measures designed to reduce financial risks and ensure the programme succeeds.
Akinnawo said the planned N729 billion bond represents another major milestone in addressing financial challenges that have affected Nigeria’s electricity market for many years. He expressed confidence that clearing these debts would help build a more stable, investment-friendly, and financially sustainable power sector capable of supporting the country’s economic growth.
The Federal Government has consistently stated that the debt reduction programme is designed to clear verified obligations owed to electricity generation companies through a structured financing approach. Officials believe the initiative will strengthen the Nigerian electricity supply industry, improve investor confidence, and create a stronger foundation for reliable power supply and future economic development.
