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FG Raises ₦728.98bn Through Bonds to Tackle ₦6tn Power Sector Debt

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FG Raises ₦728.98bn Through Bonds to Tackle ₦6tn Power Sector Debt
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By staff Reporter Rukevwe Odeh

 

 

 

The Federal Government has raised ₦728.98 billion through a bond issuance to settle verified outstanding debts owed to electricity generation companies (GenCos), as Nigeria’s power sector continues to grapple with accumulated liabilities estimated at nearly ₦6 trillion.

 

The transaction, completed in September 2026 under the government’s ₦4 trillion Power Sector Debt Reduction Programme, is designed to improve liquidity across the electricity value chain and restore the confidence of power producers and gas suppliers.

 

The latest issuance comprises ₦402 billion in cash bonds raised from the domestic capital market and ₦326.979 billion in non-cash bonds allocated to participating generation companies.

 

The Nigerian Bulk Electricity Trading Plc (NBET) confirmed that settlement of participating GenCos and their associated gas suppliers had commenced following the successful issuance of the bonds.

 

Government Targets Outstanding Electricity Debts

The bond issuance forms part of the Presidential Power Sector Debt Reduction Programme, introduced to address longstanding unpaid obligations that have weakened the financial position of electricity generation companies.

 

The government’s first bond issuance, completed in January 2026, raised approximately ₦501.02 billion. Combined with the latest transaction, the total raised under the programme’s first phase has reached approximately ₦1.23 trillion.

 

The second issuance involved 11 generation companies, compared with eight participants in the first phase.

 

Finance Minister Taiwo Oyedele said the initiative was intended to resolve legitimate legacy debts through a structured and transparent process while introducing reforms to prevent similar obligations from accumulating in the future.

 

He stressed that settling the outstanding debts must be accompanied by improved revenue collection, reduced technical and commercial losses, greater operational efficiency and stronger accountability across the electricity market.

 

Electricity Subsidies Continue to Strain Government Finances

The debt repayment initiative comes amid substantial government spending on electricity tariff subsidies.

 

According to the Nigerian Electricity Regulatory Commission’s 2025 industry report, the Federal Government’s gross electricity tariff subsidy obligation reached ₦1.928 trillion in 2025, representing 57.44 per cent of the total invoices issued by NBET.

 

The obligation averaged approximately ₦160.69 billion monthly, highlighting the financial pressure created by the gap between electricity market costs and regulated tariffs paid by consumers.

 

Industry stakeholders have warned that without sustainable funding arrangements and improved revenue recovery, electricity companies could continue accumulating unpaid bills, limiting their capacity to maintain infrastructure and expand generation.

 

FG Reports Improvement in Electricity Generation

Meanwhile, the Minister of Power, Joseph Tegbe, has maintained that electricity generation and transmission have improved in recent months, although supply remains unreliable in several communities.

 

The minister cited recent generation and transmission levels exceeding 5,000 megawatts, compared with figures ranging between 3,700MW and 4,700MW before June 2026.

 

He also highlighted infrastructure upgrades, including the restoration of the 375MW Alaoji open-cycle power plant and transmission improvements in Lagos and Abuja.

 

However, Tegbe acknowledged that improved national generation figures do not necessarily translate into consistent electricity supply for every household and business.

 

Stakeholders Demand Accountability and Better Service

Despite the government’s debt-repayment efforts, electricity-sector stakeholders insist that financial interventions must produce measurable improvements in power supply.

 

Power-sector consultant Bode Fadipe called for stricter regulatory oversight, including forensic audits of electricity distribution companies’ investments to establish whether funds earmarked for infrastructure development have been properly utilised.

 

Consumer advocate Princewill Okorie also urged regulators to strengthen consumer protection, improve billing transparency and address complaints concerning estimated bills and demands for community contributions towards electricity infrastructure.

 

Other industry stakeholders have argued that resolving legacy debts alone will not fix the sector’s structural problems without completing electricity market reforms and ensuring that available generation capacity translates into reliable supply.

 

The Federal Government’s ₦728.98 billion bond issuance represents a significant step towards addressing verified historical debts owed to electricity generation companies.

 

However, with total power-sector liabilities estimated at nearly ₦6 trillion, the latest intervention addresses only part of the broader financial challenge.

 

The critical test will be whether the debt settlement, alongside regulatory and market reforms, can improve electricity supply, strengthen investor confidence and prevent fresh debts from accumulating.


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Tompolo-Led PBAT Movement Takes Tinubu Campaign to Ekiti

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Tompolo-Led PBAT Movement Takes Tinubu Campaign to Ekiti
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By staff Reporter Rukevwe Odeh

 

 

The Tompolo-led PBAT Door-to-Door Movement is set to take its mobilisation campaign for President Bola Tinubu’s re-election to Ekiti State, with a rally scheduled for Thursday, October 29, in Ado-Ekiti.

The programme, billed for the Ekiti Parapo Pavilion, is expected to feature the distribution of campaign vehicles and materials to strengthen grassroots mobilisation ahead of the 2027 presidential election.

The movement is led by its Grand Patron, High Chief Government Oweizide Ekpemupolo, popularly known as Tompolo, and is extending its activities to Ekiti following the inauguration of its structures in Plateau State on Wednesday.

The Plateau event, held in Jos, also featured the unveiling of 25 vehicles to support the movement’s outreach activities.

The Ekiti rally forms part of the movement’s ongoing efforts to expand its organisational presence across states and support the campaign for President Tinubu and Vice President Kashim Shettima ahead of the 2027 general election.

Through its door-to-door approach, the movement aims to strengthen its grassroots network and coordinate campaign activities at the community level.


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Delta TUC Honours Oborevwori Over 13th-Month Salary

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Delta TUC Honours Oborevwori Over 13th-Month Salary
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By staff Reporter Rukevwe Odeh

 

 

Union Confers ‘Ukodo the Pace Setter’ Title on Governor, Urges Workers to Reciprocate Gesture

The Trade Union Congress (TUC), Delta State Council, has honoured Governor Sheriff Oborevwori with the title “Ukodo the Pace Setter” in recognition of his administration’s decision to institutionalise the payment of 13th-month salaries to public servants.

The union said the initiative would provide additional financial support for workers and their families amid rising living costs and prevailing economic challenges.

In a statement signed by the state chairman, Comrade Wilson Asekutu, the TUC described the legal backing for the additional salary as a demonstration of the government’s recognition of workers’ contributions to the growth and development of Delta State.

According to the labour organisation, the decision reflects the governor’s commitment to policies that deliver tangible benefits to workers and improve their welfare.

The union noted that employees who feel valued and adequately supported are more likely to remain motivated, productive and committed to their responsibilities.

It also reaffirmed its readiness to collaborate with the state government in promoting good governance, sustainable development and improved living conditions for workers and residents.

However, the TUC stressed that its engagement with the government would continue to be guided by mutual respect, constructive engagement and social dialogue.

The labour body urged the Oborevwori administration to sustain consultations with organised labour and implement policies that would strengthen workers’ purchasing power, improve productivity and protect their dignity.

It also called on public servants to reciprocate the government’s gesture through dedication, discipline and improved service delivery.

“Your Excellency, you have taken a bold step in workers’ welfare. You have set a pace. Ukodo the Pace Setter,” Asekutu said on behalf of the union’s leadership and members.

The recognition underscores the TUC’s appreciation of the governor’s decision to provide additional financial benefits to public servants and its call for sustained government-labour cooperation.


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FG Pays ₦1.23trn Power Sector Debt, Targets 19,000MW Transmission Capacity

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FG Pays ₦1.23trn Power Sector Debt, Targets 19,000MW Transmission Capacity
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By staff Reporter Rukevwe Odeh

 

 

The Federal Government has paid ₦1.23 trillion out of the ₦3.3 trillion owed to electricity generation companies as part of efforts to address financial challenges in the power sector and improve electricity supply across the country.

The Minister of Power, Joseph Tegbe, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu in Abuja.

Tegbe explained that the payment was aimed at easing liquidity challenges affecting the electricity industry, particularly those linked to gas supply to power plants.

He said the government was also working to expand Nigeria’s electricity transmission capacity from approximately 5,000 megawatts to 19,000 megawatts within the next two years.

According to the minister, the Federal Executive Council had approved three major transmission infrastructure projects to strengthen the national grid and improve electricity delivery.

The projects include the construction of underground and overhead double-circuit transmission lines at the Katampe Transmission Substation in Abuja, the supply of three high-capacity power transformers for the Egbin Transmission Substation serving the Lagos axis, and the upgrade of the 35.6-kilometre McPherson–Shagamu transmission line.

Tegbe said the projects were part of a broader strategy to improve the capacity and reliability of Nigeria’s electricity transmission network.

He added that the government had commenced a technical audit of power infrastructure across three major energy zones to identify ageing facilities requiring repairs, replacement or upgrades.

The zones include the Lagos–Ibadan axis, the Abuja–Kaduna–Karu corridor, and the Benue–Enugu–Port Harcourt corridor.

The minister noted that the Lagos–Ibadan axis alone accounts for approximately 50 per cent of the country’s electricity demand, making infrastructure improvements in the area particularly important.

He also disclosed plans to develop an east-west super grid connecting Sokoto through Funtua, Abuja, Akwanga and Benue to Epe in Lagos State.

The proposed project is expected to strengthen electricity transmission links between different parts of the country and enable more power to reach consumers.

In another development, President Tinubu has directed the Ministry of Power to facilitate the clearance of more than 300 containers of electricity equipment abandoned at ports nationwide, some for as long as 20 years.

Tegbe said technical experts would inspect the containers to determine which equipment remained functional and could be deployed to support the national grid. Obsolete materials would be disposed of appropriately.

He further announced that a new National Control Centre was under construction in Osogbo, Osun State, to replace the existing facility, which has been in operation for 64 years.

The new centre is expected to improve real-time monitoring and coordination of the national electricity grid.

The Federal Government said the measures were part of its broader efforts to address longstanding challenges in the electricity sector, strengthen transmission infrastructure and improve power supply to Nigerian households and businesses.


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