FG Signs Power Bond, Formalise Deal To Offset Gencos Debt
The federal government yesterday officially signed the financing documents for the N728.9 billion Series 2 power sector bond, marking the completion of the transaction designed to settle part of its N4 trillion outstanding obligations to the electricity market.
The signing ceremony held in Abuja formalised the financing arrangement after approval had already been secured for the Series 2 Tranche B of the bond, following the earlier issuance of the Series 2 Tranche A.
The development brings the combined value of the two power-sector bond issuances to N1.23 trillion within nine months, underscoring the federal government’s ongoing effort to address legacy debts and restore financial stability to the electricity market.
Speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stressed that debt settlement alone would not resolve the underlying problems in the power sector, insisting that the financing intervention must be backed by reforms that would improve the market’s sustainability.
