The Federal Government is set to issue a second bond worth about N729 billion to electricity generation companies (GenCos) as part of efforts to clear verified legacy debts and improve liquidity in Nigeria’s power sector.
The planned issuance will complete the first phase of the N4 trillion Presidential Power Sector Debt Reduction Programme approved by President Bola Tinubu to address longstanding financial obligations in the Nigerian Electricity Supply Industry (NESI).
t Nigerian Bulk Electricity Trading Plc (NBET) Managing Director Johnson Akinnawo, in a statement said the new issuance would boost investor confidence, improve liquidity across the electricity value chain and support sustainable power generation.
The latest move forms part of ongoing government efforts to address the liquidity challenges that have affected Nigeria’s electricity industry for years, with outstanding debts owed to GenCos identified as a major constraint to investment, generation capacity expansion and the overall viability of the power sector.
