The Federal Government may be contemplating fresh loan to pay ₦729 billion debt owed electricity generation companies, GENCOS, thus creating new debt to write off existing debt.
Apparently, the federal government contemplates to issue a second bond of about ₦729 billion to settle verified debts owed to electricity generation companies, GENCOS.
This is part of the Presidential Power Sector Debt Reduction Programme. An Investors’ Forum will hold on July 21, 2026. When this bond is issued, the total of the first and second bonds will rise to about ₦1.23 trillion.
The FG intends to rely on the bonds to improve liquidity in the power sector and boost investor confidence.
NBET disclosed the first payment on the initial ₦501 billion bond issued in January 2026 was fully settled on July 14, 2026.
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