FG to open N729 billion Series II bond offer on August 3, 2026, under its Presidential Power Sector Debt Reduction Program, as part of a renewed push to settle verified legacy debts owed to electricity Generation Companies (GenCos) and restore liquidity across the Nigerian Electricity Supply Industry (NESI).
Nigeria’s federal government will launch a N729 bn Series II power bond on 3 Aug 2026 to settle legacy debts to GenCos and boost electricity sector liquidity.Summary
In 2024, the Nigerian government launched the Presidential Power Sector Debt Reduction Program to address long‑standing liquidity gaps in the electricity sector. The first Series I bond, issued in January 2026, raised N501 bn, of which N300 bn went to the market and N201 bn to generation companies and suppliers. The coupon of about N63.5 bn was paid on schedule, signalling the government’s commitment to honouring its obligations.
Building on that success, the Ministry of Finance announced on 3 Aug 2026 the opening of a Series II bond offering of approximately N729 bn. The offer will run for ten business days, close on 14 Aug, and target funding on 24 Aug, pending approvals. CardinalStone Partners will book‑build N400 bn in cash, while the remaining N329 bn will be issued as non‑cash instruments to eligible beneficiaries. The tranche will settle verified legacy liabilities, reducing the gross claim from an initial N4 trn ceiling to about N3.3 trn after line‑by‑line verification.
The issuance is framed as a market‑based solution to the sector’s tariff shortfalls, settlement gaps and debt accumulation, and as a confidence‑building exercise that demonstrates the government’s execution‑over‑promise ethos. By attracting institutional investors such as pension funds and banks, the programme aims to deepen liquidity, stabilize plant availability, and create a sustainable, investment‑led electricity market that underpins Nigeria’s broader economic reforms.
(Source：Business News Nigeria)