The Nigerian Government has raised ₦501 billion from the domestic bond market as part of efforts to clear a portion of the outstanding debt owed to power generation companies across the country.
The funds were secured through the issuance of two seven-year bond instruments, each carrying a coupon rate of 17.50 per cent. The first tranche raised ₦300 billion, while the second tranche generated ₦201.02 billion.
The bonds were issued by the Nigerian Bulk Electricity Trading Plc (NBET) and are backed by a Federal Government guarantee under the Presidential Power Sector Debt Reduction Programme.
Fourteen electricity generation companies participated in the arrangement, describing the initiative as a significant breakthrough capable of easing long-standing liquidity constraints within the power sector.
Stakeholders said the intervention would strengthen market confidence, improve cash flow for operators and support the overall stability of Nigeria’s electricity supply industry.
