The Federal Government has announced that its recently issued ₦501 billion power sector bond, launched under the Presidential Power Sector Debt Reduction Programme, has achieved full subscription.
According to the government, the bond attracted overwhelming interest from pension fund administrators, banks, asset managers and other investors, underscoring strong confidence in the initiative aimed at clearing legacy debts, improving liquidity and restoring stability in the Nigerian Electricity Supply Industry (NESI).
Speaking at the bond signing ceremony held in Lagos on January 27, 2026, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, described the programme as a major reset of the electricity market, combining debt resolution with wider financial and structural reforms.
She explained that the signing followed the successful completion of the Series 1 Power Sector Bond Issuance by NBET Finance Company Plc. The Series 1 issuance closed at ₦501 billion, comprising ₦300 billion raised from the capital market and ₦201 billion in bonds allocated to participating power generation companies, reflecting robust 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.
So far, five generation companies, operating 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 signed Settlement Agreements with the Nigerian Bulk Electricity Trading Plc (NBET). The total negotiated settlement for these companies amounts to ₦827.16 billion, to be paid in four phased instalments.
Proceeds from the Series 1 bond will be used to fund the first and second instalment payments to participating generation companies with signed agreements, estimated at ₦421.42 billion, representing about 50 percent of the total settlement amount. These payments will be made through a combination of cash and notes.
Verheijen reaffirmed the Federal Government’s commitment to the disciplined execution of the programme, expressing optimism that more power generation companies will participate as part of broader reforms aimed at building a financially sustainable electricity market capable of supporting Nigeria’s long-term economic growth.
It will be recalled that in April last year, power generation companies raised concerns over more than ₦4 trillion in unpaid legacy debts threatening the stability of the sector.