FG set to launch N1.23trn power sector bond to address GENCO’s debt

 

The Federal Government of Nigeria has finalized plans to Launch a N1.23 trillion Power Sector Bond, part of a broader N4 trillion Debt programme aimed at stabilizing the electricity market, restoring liquidity, and rebuilding investors confidence.

The Minister of Finance and Coordinating Minister of the economy Mr Edun Wale has revealed. As of June 2025, the Nigerian government owed a debt of N6trillion to Power Holding companies in unpaid Electricity subsidies. To reduce this Liability, Øffíçìàl have engaged with the companies to forfeit roughly 50 percent of the debt.

The Minister made the remarks at an Investor Forum Organized by the Presidential Power Sector Debt Reduction Committee (PPSDRC) in collaboration with transaction advisers, ahead of the Phase 1 issuance of the bond, which is backed by a sovereign guarantee from the Federal Government.

The Forum, hosted by CardinalStone Partners Limited and NBET, attracted over 650 participants, including pension funds administrators, asset managers, banks, insurance companies, and high networth individuals, many of him showed interest in Joining.

Minister Edun confirmed that the bond is structured to meet global best practices and attract long-term institutional investors, particularly pension funds. It qualifies for Central Bank of Nigeria (CBN) liquidity status as had secured exemptions from the National Pension Commission (PenCom), making it eligible for investment by Pension Fund Administrators.

This “initiative strengthens market transparency, encourages competition, and promote private sector participation, which accounts for 90 percent of the Economy”, the minister stated. He also said that the government prefers market based financing solutions over printing money or other unsustainable funding methods.

This bond programme has been designed to resolve legacy debts in the Nigeria Electricity Supply Industry (NESI) while laying the foundation for a more efficient, self sustaining power market.

Earlier the Special Assistant to the President on Energy, Mrs Verheijen Olu, noted that debt clearance must be accompanied by financial and structural reforms to prevent future Liabilities.

The acting managing director of NBET, Mr Akinnawo Johnson, described the programme as a strategic reset for the power sector rather than a bailout. The sovereign Guarantee of the Federal Government is the Unwavering support that ensures this initiative will grow into opportunities powering dreams, homes, and industries.