The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has unveiled the implementation of the Presidential Power Sector Debt Reduction Programme, with a N729 billion Series 2 power sector bond aimed at resolving verified legacy liabilities.
Speaking during the investor forum for the bond issuance in Abuja, the minister said the programme was also designed to restore investor confidence and strengthen the financial foundation of the Nigerian Electricity Supply Industry (NESI).
The Debt Management Office (DMO) recorded total subscriptions of N1.74 trillion at its July 2026 Federal Government bond auction, with results released by the DMO showing strong demand for the three Federal Government bonds.
In a statement signed by Maryann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister, Oyedele emphasised that the transaction was a strategic milestone in the implementation of the Presidential Power Sector Debt Reduction Programme, aimed at resolving verified legacy liabilities.
He said the initiative demonstrated 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.
The minister said there was evidence that Nigeria’s reform programme was delivering measurable results, citing the successful execution of the maiden N501 billion Series 1 bond, which he said was fully subscribed and had already recorded its first scheduled repayment.
“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,” he said.
The minister also said the second tranche would cover the settlement of verified obligations to more generation companies (GenCos), gas suppliers and service providers, leading to improved plant availability, stronger market liquidity and enhanced operational stability across the power sector.
He explained that reliable electricity remained the foundation of economic growth, industrialisation, digital transformation and job creation, noting that no nation had achieved sustained development without dependable power infrastructure.
The minister linked the reform to wider economic gains, citing 3.9 per cent growth in the first quarter of 2026, and called on investors to continue partnering with the government as it works to stabilise the economy and attract long-term capital.