FG’s ₦501bn power sector bond records full subscription
The Federal Government has recorded a 100 per cent subscription of its ₦501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), aimed at clearing legacy debts and restoring liquidity in Nigeria’s electricity sector. The bond was issued by NBET Finance Company Plc as Series 1 of the Power Sector Bond Programme.
The Series 1 bond raised ₦300 billion from the capital market, with ₦201 billion allotted to participating power generation companies, reflecting strong investor confidence in the reform agenda. Pension funds, banks, asset managers and other institutional investors participated in the issuance.
Speaking at the signing ceremony in Lagos, the Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, said the programme marked a major reset of the Nigerian Electricity Supply Industry (NESI), combining debt resolution with broader financial and structural reforms.
The initiative, championed by President Bola Ahmed Tinubu, addresses long-standing arrears owed to power generation companies, which have constrained liquidity and discouraged investment across the power sector for more than a decade.
Under the programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements. So far, five generation companies — First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited and Niger Delta Power Holding Company Limited — representing 14 plants, have signed settlement agreements with Nigerian Bulk Electricity Trading Plc (NBET).
The total negotiated settlement for these companies stands at ₦827.16 billion, to be paid in four phased instalments. Proceeds from the Series 1 bond will fund the first two instalments, estimated at ₦421.42 billion, through a mix of cash and notes.
Mr Kola Adesina, Group Managing Director of Sahara Power Group, said resolving legacy debts would restore investor confidence and unlock fresh capital in the sector. He added that Sahara Power plans to commence the second phase of construction at its Egbin Power Plant once the settlement process is completed.
The programme is expected to improve liquidity for generation companies, strengthen their capacity to meet obligations, and support more reliable electricity supply. When fully implemented, it will impact 4,483.60MWh/h of generation capacity and finalise settlement for over 290,000GWh of electricity billed since 2015, benefiting more than 12 million active registered customers nationwide.
