*First phase completion will raise total issuance to N1.23tn
*NBET: Initiative will improve liquidity, strengthen investor confidence
Emmanuel Addeh in Abuja
The federal government is set to issue a second bond worth approximately N729 billion under the Presidential Power Sector Debt Reduction Programme (PPSDRP), as it intensifies efforts to clear verified legacy debts owed to electricity Generation Companies (Gencos) and improve liquidity in the Nigerian Electricity Supply Industry (NESI).
Ahead of the issuance, the government said yesterday that it will host an investors’ forum tomorrow (Tuesday, July 21) to engage prospective investors on the upcoming transaction.
The planned issuance follows the successful flotation of a N501 billion bond in January 2026. Together, the two issuances will amount to about N1.23 trillion, completing the first phase of the N4 trillion debt reduction programme approved by President Bola Tinubu to address longstanding financial obligations in the power sector.
In a statement in Abuja, the Nigerian Bulk Electricity Trading Plc (NBET) said the first coupon and principal repayment on the January bond, which fell due on July 14, had been settled promptly and in full.
According to the organisation, this demonstrates the federal government’s credit worthiness as well as commitment to meeting its contractual obligations and strengthening investor confidence in the programme.
NBET explained that the N1.23 trillion raised through the first and second issuances represents the Series 1 and Series 2 components of the Capital Market Multi Instrument Issuance Programme, which forms the first phase of the broader N4 trillion initiative.
The January issuance, it said, reflected the government’s fiscally responsible approach to settling verified obligations owed to Gencos while improving liquidity and supporting the long-term financial sustainability of the electricity market.
In his comments, the Chief Executive Officer of NBET, Mr. Johnson Akinnawo, described the proposed second issuance as another major milestone in efforts to restore confidence and financial stability in the sector.
“The second issuance demonstrates the federal government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism,” he said.
According to him, improving liquidity across the electricity value chain would strengthen the financial position of market participants, encourage fresh investment and support sustainable electricity generation.
Akinnawo recalled 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 for settling verified legacy debts.
He explained that the programme would be implemented through multiple issuances of debt instruments by NBET Finance Company Plc, a special purpose vehicle established for the programme.
According to him, the 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 added that the planned N729 billion bond would mark another important step towards resolving longstanding liabilities in the electricity sector and creating a more stable, bankable and investment friendly market capable of attracting investment.
“By improving liquidity across the electricity value chain, the programme will help strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” the NBET chief executive explained.