Nigeria’s Federal Government is encouraging investors and financial institutions to increase their support for the country’s electricity sector as it prepares to launch a new N729 billion bond aimed at clearing long-standing debts owed to electricity generation companies (GenCos).
The planned bond is the second under the Presidential Power Sector Debt Reduction Programme (PPSDRP), an initiative designed to improve liquidity, rebuild investor confidence, and strengthen Nigeria’s electricity market.
Earlier in January 2026, the government successfully issued its first N501 billion power bond, which was fully subscribed by investors. Officials say the success of that offering has created confidence for the next phase of the programme.
Speaking at the Project HOOVER Series II Investment Forum in Abuja, Minister of Power Joseph Tegbe urged investors to see Nigeria’s power industry as a sector with growing opportunities.
According to him, the government is committed to fixing the financial challenges that have slowed the sector for years and is creating a more stable environment where investments can deliver long-term returns.
Tegbe praised the efforts of the Nigerian Bulk Electricity Trading Plc (NBET) and the Debt Management Office (DMO) for helping to develop the bond programme. He also acknowledged financial advisers and transaction partners who structured the investment to meet market expectations while supporting ongoing reforms.
He explained that reliable electricity remains essential for economic growth, adding that a financially healthy power market would encourage more businesses to invest, expand operations, and create jobs.
Also speaking at the event, the Special Adviser to the President on Oil and Gas, Olu Verheijen, said the Tinubu administration is focused on restoring confidence in the power sector through consistent reforms rather than temporary solutions.
She noted that by settling verified debts, the government is turning old financial obligations into fresh investment opportunities. Improved liquidity, she added, will strengthen every part of the electricity value chain and encourage better operational performance across the industry.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the new bond as more than a fundraising exercise. He said it demonstrates the government’s commitment to fulfilling its financial obligations and rebuilding trust among investors.
Oyedele recalled that the first N501 billion bond, issued about six months ago, was fully subscribed before being listed on both the FMDQ Exchange and the Nigerian Exchange.
He also revealed that the government successfully made the first scheduled coupon and principal repayments on time, proving that the programme is backed by strong governance and reliable institutions.
According to him, Nigeria’s electricity sector has struggled with financial challenges for over a decade due to tariff shortfalls, unpaid obligations, settlement delays, and recurring grid problems. These issues, he explained, cannot be solved through government budgets alone but require market-driven financing solutions.
Following a comprehensive review of power sector liabilities approved by President Bola Tinubu in 2024, the government established a committee to verify outstanding debts and create a sustainable repayment framework.
Officials from NBET also expressed confidence that the second bond would build on the success of the first issuance.
Acting Managing Director and Chief Executive Officer of NBET, Johnson Akinnawo, said the first bond improved liquidity and strengthened investor confidence across the electricity market.
He explained that the new N729 billion Series II bond follows the same transparent and disciplined structure, adding that responsible management of the funds remains a top priority.
The proceeds from the bond will be used to settle verified debts owed to electricity generation companies, helping to improve cash flow throughout the power sector.
Government officials believe that if the bond attracts strong investor participation, it will encourage more private capital, improve electricity market stability, and accelerate reforms aimed at delivering more reliable power to Nigerians.
As preparations continue, the planned N729 billion bond is expected to serve as another major test of investor confidence in Nigeria’s ongoing power sector transformation.
