The Federal Government is preparing a second bond worth about N729bn to clear verified legacy debts owed to electricity generation companies.
Daily Trust, Punch and Vanguard all reported the plan, which is meant to improve liquidity in the power sector and reassure investors after years of unpaid obligations to GenCos.
The reports said the new bond follows an earlier intervention and is part of the government’s wider attempt to settle verified debts in the electricity market. Punch identified Power Minister Joseph Tegbe in its report on the debt-clearing plan.
The debt has been one of the pressure points in the electricity supply chain, where generation companies complain that unpaid invoices weaken their ability to maintain plants, pay suppliers and invest in capacity.
Vanguard reported that the planned N729bn bond would be issued to generation companies, while Daily Trust described it as a second power debt bond. The sources did not report a final issuance date.
If completed, the bond would shift part of the burden away from current market collections and into a structured repayment instrument. That may ease short-term pressure on power companies, but it does not by itself fix tariff shortfalls, payment discipline or gas supply constraints.
Sources: Daily Trust, Punch, Vanguard
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