The Federal Government has launched a N729 billion Series 2 Power Sector Bond to settle verified legacy debts owed to GenCos, gas suppliers and service providers, aiming to restore investor confidence, improve market liquidity and strengthen Nigeria’s electricity supply industry.

The Federal Government has launched a N729 billion Series 2 Power Sector Bond to settle verified legacy debts owed to electricity generation companies (GenCos), gas suppliers and service providers, as part of efforts to restore investor confidence and strengthen Nigeria’s electricity supply industry.

Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele announced the bond on Tuesday at an investor forum for the issuance held in Abuja. The disclosure was contained in a statement by Maryann Duke, senior special assistant on communications and press secretary to the minister.

What this means for Nigeria’s power sector

The bond is a direct intervention in one of the most persistent structural problems in Nigeria’s electricity value chain. unpaid debts that have left GenCos unable to maintain or expand generation capacity and gas suppliers unwilling to scale up deliveries without payment assurance. Settlement of these obligations is expected to improve plant availability, strengthen market liquidity and enhance operational stability across the sector.

Oyedele said the transaction is a strategic milestone in the implementation of the Presidential Power Sector Debt Reduction Programme, aimed at resolving verified legacy liabilities, restoring investor confidence and strengthening the financial foundation of the Nigerian Electricity Supply Industry (NESI).

Series 1 success underpins confidence in Series 2

Oyedele said the decision to proceed with a second tranche was validated by the performance of the maiden N501 billion Series 1 Bond, which was fully subscribed and has already recorded 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.

On Tuesday, Special Adviser to the President on Energy Olu Verheijen separately disclosed that the Federal Government has already settled N333 billion in legacy debt owed to eight GenCos, providing evidence that the programme is delivering measurable results.

Oyedele said public resources alone cannot meet Nigeria’s vast infrastructure financing needs and called on institutional investors to continue partnering with government through credible institutions, sound policy frameworks and innovative financing structures.

“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.

He described investments in the bond as investments not only in electricity, but also in productivity, industrial competitiveness, job creation and shared prosperity, adding that no nation has achieved sustained development without dependable power infrastructure.

Broader economic reforms highlighted at the forum

Oyedele used the forum to highlight macroeconomic progress under the Tinubu administration, saying Nigeria recorded 3.9 percent economic growth in the first quarter of 2026 and 11.2 percent growth in US dollar terms in 2025. He said the figures reflect growing investor confidence and improving macroeconomic fundamentals, and reaffirmed the government’s commitment to sustaining reforms that build confidence, strengthen institutions and position Nigeria as a competitive destination for investment.

“Reliable electricity remains the foundation of economic growth, industrialisation, digital transformation and job creation,” he said.