The Federal Government has raised about N1.23tn through two bond issuances as part of efforts to reduce debt in the power sector and settle about N4tn owed to electricity Generation Companies

The Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, Akin Odeyemi, disclosed this in Abuja on Monday, according to the News Agency of Nigeria.

Odeyemi said the second series raised N728.9bn, following the N501bn secured through the first series in January.

Launched in August, the Series 2 issuance attracted 11 GenCos, up from eight in the first transaction. Odeyemi said the higher participation indicated growing confidence in the programme.

Odeyemi said the N728.9bn raised under Series 2 would be disbursed through two tranches, A and B.

He said the accumulation of unpaid obligations had weakened the finances of stakeholders across the electricity market, restricting GenCos’ capacity to invest in additional power generation.

The NBET chief executive said the debt reduction programme should be seen as more than a tool for settling legacy obligations, noting that it was also designed to restore liquidity and rebuild financial confidence across the Nigerian Electricity Supply Industry.

“The increased participation is a positive development and reflects the growing confidence of stakeholders in the programme,” Odeyemi said.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Series 2 comprised N402bn in cash bonds and N326.9bn in non-cash bonds allocated to participating GenCos under the Presidential Power Sector Debt Reduction Programme.

Oyedele, however, stressed that clearing the outstanding debt alone would not address the broader financial challenges facing the power sector.

“This means that the bond programme cannot stand alone,” he said.

He said the Federal Government was leveraging Nigeria’s domestic capital market to settle legitimate legacy obligations through a structured and transparent process.