Nigeria’s power sector could transform as the Federal Government launches its first bond under the Presidential Power Sector Debt Reduction Programme.
The Federal Government fully backs the ₦590 billion Series 1 bond, signalling its strong commitment to the sector.
Government Launches Power Sector Bond
Moreover, NBET Finance Company Plc, a special vehicle of the Nigerian Bulk Electricity Trading Plc, issued the bond directly to investors.
This launch marks the first phase of a wider plan, which aims to raise ₦1.23 trillion by the first quarter of 2026.
Settling Arrears And Boosting Investment
Importantly, the government will use the proceeds to settle verified debts owed to generation companies and gas suppliers, boosting liquidity across the sector.
Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, described the programme as a strategic reset designed to restore confidence.
Moreover, by clearing these arrears, generation companies can stabilise operations and plan new electricity projects nationwide.
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“This initiative isn’t a bailout; it restores confidence and allows companies to operate and invest with certainty,” she emphasised.
Historically, legacy debt weakened utility balance sheets, restricted investment, and limited reliable electricity delivery.
However, by removing these financial constraints, the programme encourages private and institutional investors to enter the sector.
Long-Term Strategy
CardinalStone Partners Limited served as lead financial adviser and issuing house for the Series 1 bond.
In addition, President Bola Tinubu approved the broader ₦4 trillion bond initiative earlier in 2025, following consultations with GenCos.
Furthermore, the government plans further bond issuances through 2026 to strengthen the sector’s financial foundations.
By combining debt relief with investment incentives, the programme aims to create a more reliable and modern electricity network.
Ultimately, officials hope these measures will support businesses, improve household electricity supply, and transform Nigeria’s power sector.
