First tranche under presidential debt reduction programme aims to boost electricity generation and investment
The federal government has issued the first N590 billion bond under the Presidential Power Sector Debt Reduction Programme, targeting the settlement of verified debts owed to power generation companies (GenCos) and gas suppliers.
The announcement was made on Friday by the office of the Special Adviser to the President on Energy, following President Bola Tinubu’s approval of a N4 trillion bond programme earlier in October.
The N590 billion Series 1 bond, issued through NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading (NBET) Plc is fully guaranteed by the federal government. CardinalStone Partners Limited serves as the Lead Financial Adviser and Lead Issuing House.
“This marks the first phase of a bond programme designed to raise N1.23 trillion by the first quarter of 2026 to clear verified arrears owed to GenCos and gas suppliers,” the statement said.
The programme, described as the largest coordinated financial intervention in Nigeria’s power sector, aims to resolve a legacy debt overhang that has constrained new investment, weakened utility balance sheets, and hindered reliable electricity delivery.
Timeline and Objectives
The Presidential Power Sector Debt Reduction Programme was approved by Tinubu and endorsed by the Federal Executive Council (FEC) in August 2025, authorising up to N4 trillion in government-backed bonds.
- December 2025: Inaugural Investor Forum with over 600 participants from banks, pension funds, insurance companies, asset managers, and other institutional investors.
- December 2025: Launch of the N590 billion Series 1 bond, marking the first step in a multi-instrument issuance programme running into 2026.
According to Olu Verheijen, Special Adviser to the President on Energy, the programme is not a bailout but a strategic reset, designed to clear verified arrears, restore liquidity, and provide GenCos with the resources to operate confidently and invest in infrastructure.
“Clearing these debts gives operators the breathing room to stabilise operations and plan new investments, ultimately helping to deliver more power to Nigerians,” Verheijen said.
The bond issuance is expected to improve the power sector’s financial health, attract fresh investment, and enhance electricity supply across the country.
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