Federal Government has issued N590 billion as the first tranche under Presidential Power Sector Debt Reduction Programme to settle verified arrears owed to power generation companies (GenCos) and gas suppliers.
Gatekeepers News reports that the bond, guaranteed by the full faith and credit of the government, marks the launch of a broader N4 trillion bond initiative approved by President Bola Ahmed Tinubu to address legacy debts in the power sector.
According to a statement from the office of the Special Adviser to the President on Energy, the N590 billion Series 1 bond was issued through NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading (NBET) Plc, with CardinalStone Partners Limited serving as Lead Financial Adviser and Lead Issuing House.
The first phase of the bond programme aims to raise N1.23 trillion by the first quarter of 2026 to support GenCos and gas suppliers.
The Presidential Power Sector Debt Reduction Programme, endorsed by the Federal Executive Council in August, is described as the largest coordinated financial intervention in Nigeria’s power sector.
It seeks to clear verified debts, restore liquidity to utility companies, and create an enabling environment for new investment and improved power delivery.
Speaking at an investor forum on December 10, Olu Verheijen, Special Adviser to the President on Energy, said the programme is a strategic reset, not a bailout.
She explained that settling the arrears will allow power operators to stabilise operations, plan new investments, and ultimately deliver more reliable electricity to Nigerians.
The bond issuance programme will continue into 2026, with additional tranches under the N4 trillion framework expected to further strengthen the sector and enhance investor confidence.
