The Federal Government has raised 501 billion naira from the bond market to settle part of more than four trillion naira debt owed power generation companies in the country.
The funds were raised through the issuance of two bond tranches: a 300 billion naira 7-year 17.50 per cent Series 1 (Tranche A) bond and a 201.02 billion naira 7-year 17.50 per cent Series 1 (Tranche B) bond.
Nigerian Bulk Electricity Trading Plc, NBET issued the bond.
The issuance is guaranteed by the Federal Government under the Presidential Power Sector Debt Reduction Programme.
Fourteen generation companies signed the deal, describing it as a game changer that will address the liquidity crisis in the power sector.