FG raises ₦729bn bond to pay power companies
The Federal Government has raised a ₦729bn bond to settle outstanding debts owed to electricity generation companies under its power sector debt programme. Read More: https://punchng.com/fg-raises-%e2%82%a6729bn-bond-to-pay-power-companies/
The Federal Government has issued N728.979 billion in bonds as part of its Power Sector Multi-Instrument Issuance Programme, bringing the total value of bonds issued under the first phase to approximately N1.23 trillion. This latest issuance aims to settle outstanding debts owed to electricity generation companies, which have weakened liquidity and constrained investments in the power sector.
The Series 2 bond follows the successful first issuance of N501.021 billion in January 2026, with the first bond recording 100% subscription. The latest transaction comprises N402 billion in cash bonds raised from the capital market and N326.979 billion in non-cash bonds allotted to participating generation companies under the Presidential Power Sector Debt Reduction Programme.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, emphasized the need for the bond program to be supported by reforms to prevent the recurrence of legacy obligations and stressed the importance of building a financially sustainable electricity market.
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- FG raises ₦729bn bond to pay power companies punchng.com
