Nigeria issues N501bn bond to tackle power sector debts
Nigeria’s electricity sector is receiving a major financial boost through a N501.02bn bond aimed at easing longstanding debts to power generation companies. Adebayo Adelabu and other officials say this intervention is expected to improve liquidity, restore confidence, and attract new investment. The bond is part of a larger government initiative to resolve the sector’s deep-rooted financial issues. However, stakeholders stress that further reforms are needed to ensure lasting stability.
TLDR
- The Federal Government issued a N501.02bn bond through Nigerian Bulk Electricity Trading Plc to address debts in the power sector.
- The bond is the first tranche under a N1.23tn approval, part of a broader N4tn Presidential Power Sector Debt Reduction Programme.
- Outstanding obligations in the sector exceed N6tn, with generation companies struggling due to unpaid invoices and gas supply issues.
- The bond is structured in two seven-year tranches and carries a full government guarantee, aiming to inject immediate liquidity.
- Stakeholders, including Adebayo Adelabu and Jennifer Adighije, highlight the need for cost-reflective tariffs, disciplined subsidy funding, and further reforms for long-term success.
