FG raises N1.23 trillion to tackle N4 trillion GenCo debt
The Federal Government has raised about N1.23 trillion through two bond issuances under its power sector debt reduction programme, as it moves to settle about N4 trillion in legacy obligations owed to electricity Generation Companies (GenCo
The Federal Government's N1.23 trillion raised via two bond issuances covers only about 31% of the N4 trillion legacy debt owed to Generation Companies, leaving a substantial funding gap that may require further borrowing or tariff adjustments. This partial settlement could improve GenCo liquidity and investor confidence in Nigeria's power sector, but the residual obligation continues to weigh on the sector's financial sustainability and on government debt levels.
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