FG raises ₦729bn bond to pay power companies

The Nigerian government has issued a N728.979 billion bond to settle outstanding debts owed to electricity generation companies in an effort to improve liquidity and investor confidence in the power sector. This second issuance under the N4tn Power Sector Multi-Instrument Issuance Programme follows a successful first phase, which raised N501.021 billion in January 2026.

The new bond comprises N402 billion in cash bonds and N326.979 billion in non-cash bonds, which will be distributed to participating generation companies. The government aims to address accumulated legacy obligations that have weakened liquidity, constrained investments, and affected confidence across the power sector. Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, emphasized the need for accompanying reforms to prevent the accumulation of fresh debts and build a financially sustainable electricity market.