The Federal Government has finalised plans to launch a ₦1.23 trillion power sector bond as part of a broader ₦4 trillion debt programme designed to restore liquidity, stabilise the electricity market, and rebuild investor confidence.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this at an investor forum organised by the Presidential Power Sector Debt Reduction Committee (PPSDRC) in collaboration with transaction advisers, ahead of the Phase 1 issuance of the bond, which is backed by a sovereign guarantee of the Federal Government.
The government as of June 2025 owed power generation companies about ₦6 trillion in unpaid electricity subsidy. To reduce the liability, the officials have mounted pressure on the companies to forfeit about 50 percent of the debt.
According to the Minister, the bond has been carefully structured to meet global best practices and to attract long-term institutional investors, particularly pension funds.
