KEY POINTS
- Nigeria raised ₦501bn through a fully subscribed inaugural power sector bond to settle long-standing GenCos’ debts under the PPSDRP.
- Five GenCos have signed settlement agreements totaling ₦827.16bn, with about ₦421bn to be paid in the first phase.
- The initiative is expected to restore liquidity, unlock new investments, and improve electricity supply reliability nationwide.
The Federal Government of Nigeria has successfully raised ₦501 billion through its inaugural power sector bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), achieving 100 per cent subscription from pension funds, banks, asset managers, and other institutional investors.
The bond issuance marks a major milestone in the government’s efforts to resolve long-standing payment arrears owed to electricity generation companies (GenCos), restore liquidity across the Nigerian Electricity Supply Industry (NESI), and rebuild investor confidence in the sector.
The PPSDRP, championed by President Bola Ahmed Tinubu, targets legacy debts that have accumulated over more than a decade, weakening balance sheets, constraining cash flow, and discouraging new investments throughout the power value chain.
Series 1 Bond Closes at ₦501bn
Speaking at the signing ceremony in Lagos on January 27, the Special Adviser to the President on Energy, Olu Verheijen, described the programme as a decisive reset of Nigeria’s electricity market, combining debt settlement with broader financial and structural reforms.
She explained that the Series 1 Power Sector Bond Issuance, executed by NBET Finance Company Plc, closed at ₦501 billion. Of this amount, ₦300 billion was raised from the capital market, while ₦201 billion was issued as bonds directly to participating generation companies.
The strong investor appetite, she noted, reflects confidence in the government’s reform agenda and commitment to building a financially sustainable electricity market.
Under the programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements between GenCos and the Nigerian Bulk Electricity Trading Plc (NBET).
So far, five generation companies—First Independent Power Limited (FIPL), Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited (NDPHC)—representing 14 power plants nationwide, have executed Settlement Agreements.
