The Federal Government has signed a ₦728.98 billion bond agreement with Nigeria’s electricity generation companies (GenCos) as part of efforts to address financial challenges affecting the power sector.
The Series 2 bond is being issued under the Federal Government’s ₦4 trillion Power Sector Debt Reduction Programme and is designed to settle outstanding obligations owed to GenCos.
The agreement is expected to improve the financial position of power-generating companies and strengthen their ability to continue supplying electricity to the national grid.
The government’s intervention comes amid longstanding liquidity problems across Nigeria’s electricity market, where unpaid debts between market participants have continued to affect investment and operational capacity.
The latest bond arrangement forms part of broader efforts by the Federal Government to stabilise the electricity sector and create conditions for increased investment in power generation and supply.
Officials have maintained that resolving legacy debts is critical to improving confidence in the sector and ensuring that GenCos can continue operating sustainably.
The ₦728.98 billion Series 2 bond therefore represents another major financial intervention aimed at addressing one of the key challenges facing Nigeria’s power sector.
