Nigeria’s power sector received a major boost as the Federal Government confirmed full subscription of a ₦501 billion Genco bond under the Presidential Power Sector Debt Reduction Programme. The bond, backed by pension funds, banks and asset managers, signals renewed investor confidence and a push to restore liquidity across the electricity value chain.
Finance Minister Wale Edun said the issuance marks a turning point in settling long-standing debts owed to power generation companies, some running for over a decade. Five Gencos have signed final settlement agreements valued at ₦827.16 billion, to be paid in phases, easing balance-sheet pressure and opening doors for fresh investment.
Officials stressed that the programme is not a bailout but a structured reset designed to stabilise operations, improve maintenance and support reliable electricity supply. While stakeholders welcomed the reform, concerns lingered after another grid disturbance briefly disrupted power nationwide. Authorities, however, insist corrective actions were swiftly implemented as reforms continue to strengthen Nigeria’s electricity market.
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