FG RAISES N729BN BOND TO CLEAR GENCOS’ LEGACY DEBTS

The Federal Government has successfully raised N729 billion through a bond issuance to settle outstanding legacy debts owed to electricity generation companies (GenCos).

The move is part of broader efforts to stabilise the power sector and improve liquidity for operators. Officials noted that clearing the debts would enable GenCos to enhance their operations and contribute to more reliable electricity supply across the country.

The bond issuance reflects the government’s commitment to addressing long-standing financial challenges in the electricity value chain. Stakeholders welcomed the development, describing it as a significant step towards restoring confidence in the sector and attracting further investment.

Industry analysts believe that settling the legacy debts will help reduce the financial burden on generation companies and support the overall reform agenda in the power industry. They, however, stressed the need for sustainable mechanisms to prevent the accumulation of new debts in the future.

The Federal Government assured stakeholders of its determination to implement necessary reforms and ensure the efficient utilisation of funds in the power sector.