Nigeria’s electricity sector reform drive received a major boost following the listing of NBET Finance Company Plc’s ₦501.02 billion Series 1 Power Sector Bonds on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange.
The listing marks one of the largest single bond admissions on FMDQ Exchange and is expected to strengthen financing across Nigeria’s struggling power sector while expanding long-term investment opportunities in the domestic debt market.
The bonds were issued under NBET Finance Company Plc’s ₦4 trillion Multi-Instrument Issuance Programme and consist of a ₦300 billion seven-year 17.50 per cent Series 1 Tranche A Fixed Rate Bond and a ₦201.02 billion seven-year 17.50 per cent Series 1 Tranche B Fixed Rate Bond.
NBET Finance Company Plc was established by the Nigerian Bulk Electricity Trading Plc as a Special Purpose Vehicle to raise long-term financing for Nigeria’s power sector.
FMDQ: Transaction Shows Debt Market Capacity
Commenting on the transaction, Group Chief Operating Officer of FMDQ Group Plc, Ms. Tumi Sekoni, described the listing as a watershed moment for Nigeria’s debt market.
Sekoni said the transaction demonstrated the market’s capacity to mobilise long-term financing for critical infrastructure and reflected growing confidence in Nigeria’s financial markets.
“With Nigeria’s power sector at the heart of the country’s economic growth agenda, this milestone listing reflects the continued confidence of market participants in FMDQ Exchange as the preferred platform for landmark capital market transactions,” she said..
NBET: Bond Programme Will Restore Confidence
Speaking on the significance of the programme, Acting Managing Director of NBET, Mr. Johnson Akinnawo, said the initiative was conceived as part of broader reforms aimed at restoring confidence in Nigeria’s electricity sector.
Akinnawo said the programme would provide a transparent and sustainable framework for resolving long-standing obligations owed to operators within the sector.
He added that the broader objective was to unlock cash flow, attract private investment, and improve electricity supply to households and businesses nationwide.
CardinalStone: Listing Will Deepen Market Liquidity
CardinalStone Partners Limited, which sponsored the issuance and acted as a Registration Member (Listings) on FMDQ Exchange, said the transaction would improve secondary market trading and broaden investor participation in the instrument.
Group Managing Director of CardinalStone Partners Limited, Mr. Micheal Nzewi, said the broader goal was to develop a sustainable financing framework capable of addressing structural challenges within the power sector.
“Through the successful listing of this bond on the exchange, we have created an avenue for banks to make markets and for a broader pool of investors to actively trade the instrument, further deepening liquidity within the Nigerian capital market,” Nzewi stated.
He said the firm was pleased to support the Federal Government in structuring and delivering an innovative financing solution for the power sector and the wider economy.
About the Presidential Power Sector Debt Reduction Plan
The Presidential Power Sector Debt Reduction Plan is a Federal Government initiative approved by the President and endorsed by the Federal Executive Council to clear verified debts for electricity supplied between February 2015 and March 2025.
The initiative focuses on settling outstanding obligations owed by the Nigerian Bulk Electricity Trading Company to power generation companies and gas suppliers.
The ₦501.02 billion Series 1 Bonds form part of the broader reform programme designed to address long-standing payment challenges in the electricity market and improve cash flow across the power value chain.
Under the programme, the government is using long-term debt instruments to refinance and gradually settle legacy liabilities that have weakened investment, operations and investor confidence in the sector for years.
The initiative is also expected to attract more private capital, strengthen market stability, and deepen Nigeria’s infrastructure financing framework through the domestic debt market.
