FG bo izdala obveznico v višini 729 milijard N za odplačilo dolga GenCos

The Nigerian federal government has announced plans to issue a N729 billion bond to settle legacy debts owed to electricity generation companies (GenCos), marking a key step in its broader effort to stabilize the country's power sector. This follows the successful issuance of a N501 billion Series 1 bond earlier in January 2026, bringing total debt relief under the first phase of the Presidential Power Sector Debt Reduction Programme to N1.23 trillion. The initiative, approved by President Bola Tinubu, aims to resolve long-standing financial obligations within the Nigerian Electricity Supply Industry (NESI) and improve the sector's liquidity and sustainability. The upcoming bond issuance is set to take place following an Investors' Forum scheduled for this week, signaling continued engagement with stakeholders in the energy market. According to the Nigerian Bulk Electricity Trading Plc (NBET), the new bond will bolster investor confidence, enhance liquidity throughout the electricity supply chain, and support sustained power generation. NBET confirmed that the first coupon and principal repayment on the Series 1 bond, which matured on July 14, 2026, was made in full and on time, reflecting the government's adherence to its financial commitments. NBET Managing Director and CEO, Johnson Akinnawo, emphasized that the second issuance underscores the administration's dedication to addressing verified legacy obligations through a transparent and structured approach. He noted that the program, which was endorsed by the Federal Executive Council in 2025, involves multiple debt instrument issuances managed by NBET Finance Company Plc, a special-purpose entity established specifically for the initiative. These instruments are guaranteed by the full faith and credit of the federal government and include robust risk-mitigation strategies. The debt reduction program is designed to alleviate the financial strain on the power sector, which has faced persistent liquidity issues over the years. Outstanding debts owed to GenCos have been identified as a critical barrier to attracting investment, expanding generation capacity, and ensuring the overall viability of the electricity industry. By clearing these debts, the government hopes to create a more stable and attractive environment for both domestic and international investors. The first phase of the program, totaling N1.23 trillion, includes the two bonds already issued and is part of a larger N4 trillion initiative aimed at restructuring the nation's power sector finances. The success of the initial bond issuance, coupled with the planned second one, indicates progress toward achieving the objectives outlined in the presidential program. Akinnawo highlighted that improved liquidity in the electricity value chain could lead to greater market confidence, increased investment flows, and ultimately, higher power output for consumers. The government's focus on resolving legacy debts aligns with broader economic reforms aimed at revitalizing key sectors of the economy. With the power sector being a cornerstone of national development, the resolution of outstanding liabilities is expected to catalyze further improvements in infrastructure, job creation, and energy security. As the second bond issuance moves forward, attention will remain on how effectively the funds are deployed and whether they translate into tangible benefits for the electricity market and end-users alike.