Power bond sales have written a new chapter for Nigeria’s long-troubled electricity sector.
After years of financial strain and uncertainty, investors fully subscribed to the Federal Government’s ₦501 billion power sector bond, showing strong confidence in ongoing reforms.
Investor Confidence Surges
The government issued the bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), and the President’s Special Adviser on Energy, Mrs Olu Arowolo Verheijen, announced it publicly.
The bond directly addresses long-standing arrears owed to power generation companies.
Restoring Liquidity And Trust
Moreover, the programme restores liquidity, rebuilds trust in the Nigerian Electricity Supply Industry (NESI), and encourages fresh investment.
“This Programme marks a decisive reset, combining debt resolution with broader financial and structural reforms,” Mrs Verheijen explained, highlighting its transformative potential.
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Consequently, industry leaders welcomed the initiative as a critical step toward stabilising Nigeria’s electricity market.
Group Managing Director of Sahara Power Group, Mr Kola Adesina, emphasised that investors need confidence to commit capital.
He added that his company will start construction on the second phase of the Egbin Power Plant immediately after completing settlements.
Power Bond Funding Settlements And Growth
The Series 1 bond raised ₦501 billion, with investors contributing ₦300 billion and power companies taking ₦201 billion.
The government will use these funds to pay the first two instalments of ₦827.16 billion owed to five major generation firms.
Furthermore, the payments, delivered via a mix of cash and notes, will ease liquidity pressures and strengthen company balance sheets.
As a result, the programme will impact 4,483.60 megawatt-hours per hour of generation capacity and serve over 12 million electricity customers.
Finally, the government plans to issue up to ₦4 trillion to clear legacy debts, reinforcing transparency, fiscal discipline, and long-term growth.
In short, the fully subscribed power bond signals renewed hope, stability, and investment for Nigeria’s electricity sector.
