KEY POINTS
- Elektron Finance SPV launches N200 billion bond programme to fund 30MW gas-fired embedded plant in Lagos’ Victoria Island.
- Project will include a 5km dedicated distribution network and long-term corporate power contracts; commercial operations targeted for 2026.
- Backed by InfraCredit and other major institutional investors, marking Elektron’s debut in Nigeria’s debt capital markets.
Elektron Finance SPV Plc, the financing arm of Nigeria’s Elektron Energy Development Strategies, is stepping into the debt market with a bold N200 billion bond programme, betting big on the country’s hunger for reliable electricity.
The proceeds will bankroll a 30-megawatt gas-fired embedded power plant in Lagos’ Victoria Island, a project the company says will cut diesel dependence and deliver cleaner, more dependable energy to some of Nigeria’s most high-profile business districts. Construction is underway, with commercial operations targeted for 2026.
Project marks Elektron’s first bond market debut as investors back decentralized power push
This isn’t Elektron’s first taste of market financing — earlier this year it closed a N4.64 billion, 15-year Series 1 infrastructure bond, backed by InfraCredit and rated triple-A locally.
That smaller raise served as a warm-up act for what is now the company’s main play: a dedicated 5-kilometre distribution network, three high-efficiency Wartsila gas engines, and long-term power purchase agreements with both major corporate off-takers and the Eko Electricity Distribution Company.
The Victoria Island Power Limited project — wholly owned by Elektron subsidiaries — is pitched as a model for urban, decentralized energy delivery. Funding support and partnerships come from a coalition of institutional investors, including ARM-Harith Infrastructure Fund, the Nigeria Sovereign Investment Authority, and the Bank of Industry.
“We are especially grateful to InfraCredit for its unwavering support, and to our bondholders for their trust in our vision,” said Tola Talabi, Elektron’s managing director and co-CEO. “Their involvement reflects a shared belief in Elektron’s capacity to deliver sustainable energy infrastructure projects.”
Nigeria’s electricity sector has been warming to these kinds of smaller, embedded generation schemes, especially as government-backed initiatives like the World Bank’s DARES programme aim to bring power to millions via mini-grids and off-grid solutions. For Victoria Island’s bankers, hotel owners and tech hubs, the lure is simpler: lights that stay on, without the constant rumble of diesel generators.
