Nigeria is planning to raise approximately $2.9 billion from its domestic capital markets to address existing debts owed to power companies. The move is part of the country’s efforts to stabilize the power sector and improve the financial health of electricity providers, which have long struggled with revenue collection and overdue payments.
The Nigerian government aims to issue bonds or similar financial instruments to raise the necessary funds, thereby enabling power companies to settle outstanding debts and improve their operational capacities. This initiative is expected to bolster investor confidence in Nigeria’s financial markets and support the government’s broader economic reform agenda.
Addressing debt issues within the power sector is seen as a crucial step toward enhancing electricity supply and reliability across Nigeria. Experts note that reducing unpaid debts could lead to better service delivery and potentially attract more private investment into the sector.
The country’s move to fund these debts domestically reflects its preference to leverage local financial resources rather than seeking international aid or loans. It also indicates ongoing efforts to strengthen Nigeria’s financial infrastructure and promote sustainable economic growth.