The Federal Government has raised ₦728.9 billion through its second bond issuance to offset part of the ₦4 trillion legacy debt owed to electricity generation companies, GenCos.

The second series comprises ₦402 billion in cash bonds and ₦326.9 billion in non-cash bonds allocated to participating GenCos.

The latest issuance brings the total funds raised under the government’s electricity sector debt-reduction programme to ₦1.23 trillion.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the initiative is aimed at restoring liquidity and confidence in Nigeria’s electricity market.

Oyedele, however, stressed the need for further reforms to prevent the accumulation of similar debts in the sector in the future.

The government’s debt-settlement programme is expected to provide relief to electricity generation companies while supporting greater financial stability across the power sector.