FG Seals N728.9bn Power Bond Deal To Settle Gencos’ Outstanding Debt
The federal government has signed the financing documents for the 728 billion naira Series 2 power sector bond, marking the completion of the transaction designed to settle part of its 4 trillion naira outstanding obligations to the electricity market.
The signing ceremony held in Abuja formalised the financing arrangement after approval had already been secured for the Series 2 Tranche B of the bond, following the earlier issuance of the Series 2 Tranche A.
The development brings the combined value of the two power-sector bond issuances to 1.23 trillion naira within nine months, underscoring the federal government’s ongoing effort to address legacy debts and restore financial stability to the electricity market.
Speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stressed that debt settlement alone would not resolve the underlying problems in the power sector, insisting that the financing intervention must be backed by reforms that would improve the market’s sustainability.
The power sector bond he said must be accompanied by stronger market discipline and structural reforms to prevent a recurrence of the legacy debts that have weakened Nigeria’s electricity market.
Earlier in his opening remarks, the Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, Akin Odeyemi, described the Series 2 issuance as another important milestone in the federal government’s efforts to address longstanding financial challenges confronting the electricity supply industry.
