The Federal Government has raised ₦729 billion through a bond issuance aimed at reducing longstanding debts in Nigeria’s electricity sector and improving the financial stability of the industry.

The funding initiative is part of broader efforts to address outstanding obligations owed to power generation companies and other stakeholders, whose unpaid debts have continued to affect investment and operations across the sector.

Officials said the bond would help ease liquidity challenges within the electricity value chain, support ongoing reforms and strengthen confidence among investors and industry participants.

The debt repayment plan forms part of a wider government strategy to resolve legacy liabilities that have accumulated over the years and contributed to persistent challenges in power generation and distribution.

Industry experts have argued that settling outstanding debts is essential for attracting fresh investment, improving infrastructure and ensuring a more sustainable electricity supply system.

The government has maintained that addressing the sector’s financial challenges remains a key priority, noting that improved liquidity could enhance operational efficiency and encourage long-term growth in the power industry.

Stakeholders expect the intervention to provide relief to power companies while supporting efforts to improve electricity generation, transmission and distribution across the country.

The bond issuance is one of several measures being implemented to strengthen Nigeria’s power sector and create a more viable environment for investment and service delivery.