The Federal Government has announced that the inaugural ₦501 billion tranche of its Presidential Power Sector Debt Reduction Programme has achieved a 100 per cent subscription, signalling strong investor confidence in efforts to resolve long-standing financial challenges in Nigeria’s electricity sector.
The development was disclosed in a statement issued on Tuesday by the Special Adviser to the President on Energy, Olu Verheijen. According to the statement, the bond issuance attracted robust participation from a broad range of institutional investors, including pension funds, banks, asset managers, and other market participants.
The bond forms part of a wider government strategy aimed at addressing legacy payment arrears owed to power generation companies, restoring liquidity in the sector, and strengthening confidence across the Nigerian Electricity Supply Industry.
Speaking at the bond issuance signing ceremony held in Lagos on 27 January 2026, Verheijen described the programme as a turning point for the electricity market. She said the initiative combined debt resolution with wider financial and structural reforms designed to reset the sector on a sustainable footing.
“The Programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms,” she said.
According to the statement, the Series 1 Power Sector Bond Issuance was executed by NBET Finance Company Plc and closed at ₦501 billion. The total amount comprised ₦300 billion raised from the capital market and ₦201 billion allocated directly to participating power generation companies.
Under the programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements between power generation companies and the Nigerian Bulk Electricity Trading Plc (NBET).
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 — have executed Settlement Agreements with NBET. The total negotiated settlement amount for these companies stands at ₦827.16 billion, payable in four phased instalments.
The Federal Government said proceeds from the Series 1 bond issuance would fund the first and second instalment payments, estimated at ₦421.42 billion, representing approximately 50 per cent of the total settlement figure.
Reacting to the development, Group Managing Director of Sahara Power Group, Kola Adesina, said the programme would help restore investor confidence and unlock further investment in the power sector. He noted that outstanding debts had previously limited companies’ ability to reinvest, but expressed optimism following President Bola Ahmed Tinubu’s commitment to resolving legacy issues.
Adesina added that once the settlement process is completed, construction of the second phase of the Egbin Power Plant would begin immediately.
The government stated that clearing historic arrears is expected to improve liquidity for generation companies, attract new investment, and support a more reliable nationwide electricity supply. Verheijen reaffirmed the Federal Government’s commitment to disciplined implementation of the programme, describing it as critical to building a financially sustainable electricity market capable of supporting Nigeria’s long-term economic growth.
