The federal government has launched the second tranche of its guaranteed power sector bond, valued at approximately N729 billion.
Taiwo Oyedele, minister of finance and coordinating minister
of the economy, announced the development at an investor forum for the bond
issuance in Abuja on Tuesday.
Speaking at the event, the minister reaffirmed the federal
government’s commitment to restoring financial sustainability in Nigeria’s
power sector.
He said the series 2 bond issuance is a strategic milestone
in the implementation of the presidential power sector debt reduction programme
(PPSDRP), aimed at resolving verified legacy liabilities, restoring investor
confidence, and strengthening the financial foundation of the Nigerian
electricity supply industry (NESI).
Oyedele noted that the initiative demonstrates the federal
government’s resolve to honour its commitments through transparent,
market-based reforms that improve liquidity across the electricity value chain
while creating a more attractive environment for long-term private investment.
According to the minister, the successful execution of the
maiden N501 billion series 1 bond, which was fully subscribed and has already
recorded its first scheduled repayment, provides clear evidence that Nigeria’s
reform programme is delivering measurable results.
“The first series proved that government keeps its
commitments. Investors reward execution, not promises, and every commitment
honoured today lowers the cost of capital tomorrow,” the tax expert was quoted
as saying in a statement.
‘SECOND TRANCHE WOULD ENHANCE POWER SECTOR OPERATIONAL STABILITY’
Oyedele said the second tranche will extend the settlement
of verified obligations to additional generation companies, gas suppliers, and
service providers.
This, he said, would help to improve plant availability,
strengthen market liquidity and enhance operational stability across the power
sector.
He noted that reliable electricity remains the foundation of
economic growth, industrialisation, digital transformation and job creation,
adding that no nation has achieved sustained development without dependable
power infrastructure.
The minister also highlighted broader macroeconomic reforms
being implemented under the administration of President Bola Ahmed Tinubu,
including measures to strengthen fiscal sustainability, improve the investment
climate, and restore economic stability.
He noted that Nigeria recorded 3.9 percent economic growth
in “the first quarter (Q1) of 2026, while the economy expanded by 11.2 percent
in US dollar terms in 2025”, reflecting growing investor confidence and
improving macroeconomic fundamentals.
However, Oyedele noted that public resources alone cannot
meet Nigeria’s vast infrastructure financing needs, underscoring the importance
of mobilising long-term private capital through credible institutions, sound
policy frameworks and innovative financing structures.
The minister called on institutional investors to continue
partnering with the government in supporting reforms that strengthen the
economy, noting that investments in the bond represent investments not only in
electricity, but also in productivity, industrial competitiveness, job
creation, and shared prosperity.
He reiterated the federal Government’s commitment to
sustaining reforms that build confidence, strengthen institutions, and position
Nigeria as a competitive destination for investment.
The federal government had said it paid N333 billion to
eight participating electricity generation companies (GenCos), covering 17
power plants, under the first phase of the power sector debt settlement
programme.
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