The Federal Government has commenced the repayment of the over N4 trillion debt owed to electricity Generation Companies (Gencos) with the launch of a N590 billion first-tranche bond issuance.

The bond, issued through the Debt Management Office (DMO), is aimed at easing liquidity challenges in the power sector and restoring confidence among investors and industry operators. The move is expected to strengthen electricity generation capacity and improve power supply across the country.

Industry stakeholders have welcomed the development, describing it as a major step toward stabilising the power sector, improving energy security, and supporting the Federal Government’s wider economic reforms under the Renewed Hope Agenda.