The Federal Government of Nigeria has recorded a 100% subscription for its ₦501 billion inaugural bond issuance under the Presidential Power Sector Debt Reduction Programme (PPSDRP), marking a major step toward resolving long-standing payment arrears and restoring liquidity in the Nigerian Electricity Supply Industry (NESI).
The bond, which attracted strong participation from pension funds, banks, asset managers and other institutional investors, was issued to address legacy debts owed to power generation companies that have constrained investment and weakened the sector for more than a decade.
Speaking at the signing ceremony in Lagos on January 27, 2026, the Special Adviser to the President on Energy, Olu Verheijen, described the programme as a decisive reset of Nigeria’s electricity market, combining debt resolution with wider financial and structural reforms.
The Series 1 Power Sector Bond Issuance was completed by Nigerian Bulk Electricity Trading Plc (NBET) Finance Company Plc, closing at ₦501 billion. The issuance comprised ₦300 billion raised from the capital market and ₦201 billion in bonds allotted to participating generation companies, reflecting strong investor confidence in the government’s reform agenda championed by Bola Ahmed Tinubu.
Under the programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements. Five power generation companies—First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited and Niger Delta Power Holding Company Limited—have so far executed settlement agreements with Nigerian Bulk Electricity Trading Plc. The total negotiated settlement amount for these firms stands at ₦827.16 billion, to be paid in four phased instalments.
Proceeds from the Series 1 issuance will fund the first and second instalment payments, estimated at ₦421.42 billion, representing about 50% of the negotiated settlement amount. Payments will be made through a combination of cash and notes.
Commenting on the development, Kola Adesina, Group Managing Director of Sahara Power Group, said the clearing of legacy debts would restore investor confidence and unlock new capital. He noted that Sahara Power plans to commence construction on the second phase of the Egbin Power Plant once the settlement process is completed.
By clearing historic arrears, the programme is expected to improve liquidity for generation companies, strengthen their balance sheets, and support more reliable electricity supply. When fully implemented, the initiative will impact 4,483.60 MWh/h of generation capacity and finalise settlement for over 290,644 GWh of electricity billed since 2015, benefiting more than 12 million registered electricity customers nationwide.
The government credited the successful issuance to collaboration among key institutions, including the Ministry of Finance, the Ministry of Power, the Debt Management Office, the Central Bank of Nigeria and the National Pensions Commission. CardinalStone Partners Limited led the transaction as Lead Financial Adviser and Issuing House, working alongside NBET and the Office of the Special Adviser on Energy.
Verheijen reaffirmed the Federal Government’s commitment to disciplined implementation of the programme, adding that additional power generation companies are expected to participate as reforms continue to build a financially sustainable electricity market capable of supporting Nigeria’s long-term economic growth.
