The Federal Government of Nigeria has successfully issued its first ₦501 billion bond under the Presidential Power Sector Debt Reduction Programme, recording full subscription from pension funds, banks, asset managers, and other investors. The issuance marks the opening phase of a wider programme valued at up to ₦4 trillion, aimed at clearing long standing payment arrears owed to power generation companies.
The bond, executed through NBET Finance Company Plc, is designed to resolve GenCos’ debts accumulated between 2015 and 2025, which have constrained liquidity and weakened investment across the electricity value chain. Five GenCos covering 14 power plants have signed settlement agreements totaling ₦827.16 billion, with proceeds from the Series 1 issuance funding about half of the initial negotiated payments.
The transaction was led by CardinalStone alongside a broad syndicate of financial and legal advisers. Bond repayment will be supported by federal budgetary allocations into a Central Bank managed sinking fund, complemented by structured contributions from electricity distribution companies.
