Nigeria raises 1.23 trillion naira bond to tackle power sector debt

The Nigerian government has raised approximately 1.23 trillion naira through two bond issuances to address a portion of the 4 trillion naira legacy debt owed to electricity generation companies. The latest transaction, a Series 2 bond, raised 728.9 billion naira, officials announced at a signing ceremony in Abuja. The Series 2 issuance, launched in August 2026, comprises 402 billion naira in cash bonds raised from the capital market and 326.979 billion naira in noncash bonds allotted to participating generation companies. This brings the total raised under the first phase of the Power Sector Multi-Instrument Issuance Programme to approximately 1.23 trillion naira, following the 501.021 billion naira Series 1 issuance completed in January 2026. Finance Minister Taiwo Oyedele stated the transaction addresses accumulated legacy obligations that have weakened liquidity and constrained investment across the electricity market. He emphasized that the bond programme must be accompanied by broader reforms to prevent the recurrence of such debts. "This means the bond programme cannot stand alone.