The federal government has launched the first N590 billion bond under the Presidential Power Sector Debt Reduction Programme, marking a major step in addressing outstanding debts owed to power generation companies (GenCos) and gas suppliers.
The initiative follows President Bola Tinubu’s approval of a N4 trillion bond to settle verified debts in the power sector, announced by Minister of Power, Bayo Adelabu, on October 7.
In a statement on Friday, the office of the Special Adviser to the President on Energy welcomed the issuance, highlighting that the N590 billion Series 1 bond, issued by NBET Finance Company Plc—a special purpose vehicle of Nigerian Bulk Electricity Trading (NBET) Plc—is “guaranteed by the full faith and credit of the federal government.”
“CardinalStone Partners Limited is the Lead Financial Adviser and Lead Issuing House,” the statement added.
The statement noted that the bond issuance marks the first phase of a programme targeting N1.23 trillion by the first quarter of 2026 to clear verified arrears owed to GenCos and gas suppliers.
“The Presidential Power Sector Debt Reduction Programme authorises the issuance of up to 4 trillion Naira in government-backed bonds to address a legacy debt overhang that has constrained new investment, weakened utility balance sheets, and hindered reliable power delivery,” the office said.
“It has been described as the largest coordinated financial intervention in the history of Nigeria’s power sector.”
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Approved by President Tinubu and endorsed by the Federal Executive Council (FEC) in August, the programme authorises the issuance of up to N4 trillion in government-backed bonds.
The statement also outlined key milestones for the programme:
December 2025: Inaugural Investor Forum held to present bond issuance programme to over 600 participants, including banks, pension funds, insurance companies, issuing houses, asset managers, family offices, trustees, and other institutional investors.
December 2025: Launch of the N590 billion Series 1 Power Sector Bond under a N4 trillion Multi-Instrument Issuance Programme.
According to the office, the bond issuance programme will continue into 2026.
Speaking at the investor forum on December 10, Olu Verheijen, Special Adviser to the President on Energy, emphasised that the programme is not a “bailout” but a “strategic reset.”
She explained that it is designed to clear “verified arrears, restore liquidity, and give power generation companies the footing they require to operate and invest with confidence.”
Verheijen added that settling the debts would provide operators with the space to stabilise operations, plan new investments, and ultimately deliver more power to Nigerians.
