The Federal Government has recorded a major milestone in its efforts to stabilise Nigeria’s electricity market, as investors fully subscribed to the ₦501 billion inaugural power sector bond issued under the Presidential Power Sector Debt Reduction Programme.
The successful uptake of the bond was confirmed in a statement released on Tuesday by the Special Adviser to the President on Energy, Olu Verheijen, who described the outcome as a strong vote of confidence in the government’s reform agenda for the electricity industry.
According to the statement, the bond attracted wide participation from institutional investors, including pension fund administrators, commercial banks, asset management firms and other players in the financial market.
The initiative is designed to clear long-standing payment obligations owed to power generation companies, improve liquidity across the sector and rebuild trust in the Nigerian Electricity Supply Industry.
Speaking at the signing ceremony held in Lagos on January 27, 2026, Verheijen said the programme marks a turning point for the power market, combining debt settlement with deeper financial and structural reforms aimed at long-term sustainability.
Details from the government showed that the Series 1 issuance, carried out by NBET Finance Company Plc, closed at ₦501 billion. Of this amount, ₦300 billion was raised from the capital market, while ₦201 billion was allocated directly to participating generation companies.
The programme covers verified electricity supply receivables accumulated between February 2015 and March 2025, which are being resolved through negotiated settlement agreements with power producers.
So far, five generation companies – First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited and Niger Delta Power Holding Company Limited have signed settlement agreements with the Nigerian Bulk Electricity Trading Plc.
The total value of the negotiated settlements for the companies stands at ₦827.16 billion, to be paid in four instalments. Proceeds from the first bond issuance will fund the initial two payments, estimated at ₦421.42 billion, representing roughly half of the total obligation.
Reacting to the development, Group Managing Director of Sahara Power Group, Kola Adesina, said the bond issuance would help restore confidence among investors and unlock fresh capital for expansion.
He noted that unresolved debts had previously discouraged further investment in the sector but said the government’s commitment to addressing legacy issues had changed the outlook. Adesina added that work would begin immediately on the second phase of the Egbin Power Plant once the settlement process is completed.
The Federal Government said clearing historical arrears is expected to strengthen the financial position of power generation companies, attract new investments and ultimately improve electricity supply across the country.
Verheijen reaffirmed the administration’s commitment to fully implementing the programme, adding that the government anticipates the participation of additional generation companies as part of broader reforms to build a financially viable electricity market capable of supporting Nigeria’s economic growth.
