By Stephen Simon
The Federal Government has raised N728.979 billion in a fresh intervention aimed at easing the financial strain in Nigeria’s electricity market and settling verified debts that have weakened liquidity in the sector.
The transaction is the second issuance under the N4 trillion Power Sector Multi-Instrument Issuance Programme, bringing the combined value of bonds issued in the first phase of the debt-reduction initiative to approximately N1.23 trillion.
The Special Adviser to the President on Energy, Olu Verheijen, said the first issuance had demonstrated that the debt-reduction model was viable, while the second series was designed to expand its impact across the electricity supply industry.
She said the first series resulted in settlement agreements with 11 generation companies representing 21 power plants, adding that the latest issuance would deepen implementation of the programme.
“Series 1 proved the model, and Series 2 is scaling it,” Verheijen said, stressing that expanding the initiative was critical to achieving a meaningful impact on the sector.
Verheijen said the two issuances had delivered more than N1.1 trillion under the N4 trillion ceiling approved by the Federal Government.
Michael Nwezi of Cardinal Stone, the lead issuing house and financial adviser, said the transaction demonstrated how public-sector intervention and private-sector capital could be combined to address a complex sectoral challenge.
Nwezi described the combined transaction as the largest fund issuance in the history of the Nigerian capital market, saying it attracted pension fund administrators, banks, sovereign wealth funds, asset managers as well as institutional and retail investors.
The N4 trillion Power Sector Multi-Instrument Issuance Programme was approved by the Federal Executive Council in August 2025 to address verified legacy obligations owed to generation companies and gas suppliers.
The first issuance, completed in January 2026, was valued at N501.021 billion and recorded 100 per cent subscription. It comprised N300 billion raised from the capital market and N201.021 billion issued as non-cash bonds to participating generation companies.
With the latest N728.979 billion Series 2 issuance, the first phase of the programme has reached approximately N1.23 trillion.
The Federal Government said the broader initiative is intended to improve liquidity, restore investor confidence and support sustainable electricity generation, alongside reforms aimed at strengthening revenue assurance, reducing technical and commercial losses and preventing another accumulation of unpaid obligations.
