The Federal Government has announced the successful issuance of a N501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP).
The development was disclosed in a statement issued by the Office of the Special Adviser to the President on Energy, following the formal announcement of the bond’s outcome at a signing ceremony held in Lagos on Tuesday.
According to the statement, the bond recorded a 100 per cent subscription, signalling strong investor confidence.
The N501 billion issuance represents the first tranche of the Federal Government’s N4 trillion power sector multi-instrument issuance programme, designed to mobilise funds to address accumulated debts across the industry.
READ ALSO: FG Issues First N590Bn Bond to Settle Debts Owed GenCos
Bond issuance allows governments to raise capital by borrowing from investors under agreed terms.
Recall that on December 19, the Federal Government had issued a N590 billion bond under the PPSDRP as part of plans to raise N1.23 trillion by the first quarter of 2026 to settle verified arrears owed to power generation companies (GenCos) and gas suppliers.
In the statement, the office said the initiative, driven by President Bola Tinubu, is aimed at clearing decades-long debts that have constrained liquidity, discouraged investment and weakened the overall performance of the power sector.
“The signing follows the successful completion of Series 1 Power Sector Bond Issuance by NBET Finance Company Plc,” the office said.
“Series 1 issuance closed at N501 billion, comprising N300 billion raised from the capital markets and N201 billion in bonds allotted to participating power generation companies, reflecting strong investor confidence in the reform agenda.”
“Under the Programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with power generation companies.
“To date, five (5) power generation companies (GenCos) representing fourteen power plants nationwide; First Independent Power Limited (FIPL), Geregu Power Plc, Ibom Power Company Limited, Mabon Limited and Niger Delta Power Holding Company Limited (NDPHC), have executed Settlement Agreements with the Nigerian Bulk Electricity Trading Plc (NBET).”
The office disclosed that the total negotiated settlement amount for the affected companies stands at ₦827.16 billion, to be paid in four instalments.
According to the statement, proceeds from the Series 1 issuance will be used to fund the first and second instalment payments to GenCos that have signed settlement agreements.
These payments are estimated at N421.42 billion, representing about 50 per cent of the total negotiated settlement figure.
The office further noted that “payment for the initial phase will be made through a mix of cash and notes”.
“When completed, the Programme will impact 4,483.60MWh/h of electricity generation capacity by Nigerian GenCos, effectively finalising settlement of payments for 290,644.84GWhr of electricity billed since February 2015 and providing a strong foundation for new investments into capacity enhancement and expansion by companies serving 12.03mn active registered customers across the country,” the office said.
