The Federal Government has raised N728.979 billion through the second issuance under its N4 trillion Power Sector Multi-Instrument Issuance Programme to settle verified debts owed to electricity generation companies.

The latest issuance was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele on Monday September 14 in Abuja during the signing ceremony.

The latest issuance comprises N402 billion in cash bonds raised from the capital market and N326.979 billion in non-cash bonds allotted to participating generation companies under the Presidential Power Sector Debt Reduction Programme.

The transaction brings the total value of bonds raised under the first phase of the programme to about N1.23 trillion.

The issuance follows the successful N501.021 billion Series 1 bond completed in January 2026. Under the first series, N300 billion was raised from the capital market, while N201.021 billion was issued as non-cash bonds to participating generation companies.

Speaking at the signing ceremony Oyedele, said the latest transaction was aimed at addressing legacy debts that had weakened liquidity and investor confidence in the electricity market.

The minister however, emphasized that debt settlement must be accompanied by reforms to prevent the accumulation of fresh obligations.

He identified stronger market discipline, improved revenue assurance, reduction in technical and commercial losses, efficiency and accountability across the electricity value chain as key measures required to sustain the sector.

The minister said the Federal Government was also using the domestic capital market to address major economic challenges while mobilising long-term financing. 

He said the success of the programme would ultimately be measured by its impact on electricity supply rather than the amount of money raised.

The Chief Executive Officer of Nigerian Bulk Electricity Trading Plc, Akinola Odeyemi, said the Series 2 bond would be implemented in two tranches and involved 11 generation companies, compared with eight under the first series.

According to him, the increased participation reflected growing confidence in the programme and its framework for resolving verified outstanding obligations in the power sector.

Odeyemi said accumulated unpaid debts had affected the ability of market participants to meet their financial commitments and limited the capacity of generation companies to invest in expanding power generation.

He said the debt reduction programme was therefore part of broader efforts to restore liquidity, financial confidence and sustainability to the electricity market.

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 Federal Government said the programme was designed to improve liquidity, strengthen investor confidence, support sustainable electricity generation and prevent the recurrence of unpaid obligations across the power value chain.