The Series 2 transaction follows the ₦501 billion inaugural bond issued under the same programme in January 2026.

That first issuance was fully subscribed by investors including pension funds, banks and asset managers.

When the verified ₦501 billion Series 1 issuance is combined with the ₦728.979 billion Series 2 transaction, the value of the two issuances is approximately ₦1.23 trillion.

The broader programme, however, has an approved ceiling of ₦4 trillion and applies only to claims that are verified and settled under agreed terms.

The Presidency previously said outstanding obligations had weakened GenCo balance sheets, discouraged investment and contributed to liquidity problems across the Nigerian Electricity Supply Industry.

Power-sector officials have argued that resolving the debts could give generation companies greater financial capacity to maintain generating assets, meet obligations to suppliers and invest in capacity.

However, settlement of GenCo debts should not be interpreted as an immediate guarantee of improved electricity supply to households.

Nigeria’s power problems also involve gas availability, generation capacity, transmission limitations, distribution constraints, metering gaps, revenue collection and broader market inefficiencies.

The Nigerian Electricity Regulatory Commission has previously linked weak commercial arrangements and mounting debts to operational challenges among power generators.

The Federal Government has consequently combined the debt programme with wider reforms aimed at improving financial discipline and reducing the accumulation of new obligations.

Under the Presidential Power Sector Debt Reduction Programme, eligible historical debts are subjected to verification and negotiated settlement before they are financed through the capital market and other instruments.

The Series 2 signing in Abuja is therefore expected to move the government closer to resolving another portion of the liabilities inherited by the electricity market.

Attention will subsequently turn to how much of the outstanding verified debt remains, which additional GenCos enter subsequent issuances and whether improved liquidity translates into measurable investment and reliability across the power sector.