Nigeria’s ₦501bn Power Bond Fully Subscribed

In a major step toward stabilizing the nation’s energy market, the Federal Government’s inaugural ₦501 billion tranche of the Presidential Power Sector Debt Reduction Programme has achieved 100 percent subscription.

Olu Verheijen, the Special Adviser to the President on Energy, announced this milestone on Tuesday, January 27, 2026. The bond issuance attracted diverse participation from institutional investors, including pension funds, banks, and asset managers. This signal highlights a renewed appetite for investment in the Nigerian Electricity Supply Industry (NESI).

Resolving Decades of Energy Debt

The program is specifically designed to clear legacy payment arrears owed to power generation companies (GenCos) for electricity supplied between February 2015 and March 2025. By addressing these long-standing debts, the government aims to restore liquidity and foster a financially sustainable electricity market.

Execution and Allotment Breakdown

The Series 1 Power Sector Bond, managed by NBET Finance Company Plc, finalized at ₦501 billion. The funding breakdown includes:

• ₦300 billion raised directly from the capital market.
• ₦201 billion allotted to participating generation companies.

Proceeds from this first series will cover the first two phases of the settlement. This totals approximately ₦421.42 billion—which represents about half of the total negotiated amount.

Key Players and Market Impact

So far, five major generation companies have signed settlement agreements with the Nigerian Bulk Electricity Trading Plc (NBET):

• Geregu Power Plc
• Niger Delta Power Holding Company Limited
• First Independent Power Limited
• Ibom Power Company Limited
• Mabon Limited

The total negotiated settlement for these five firms currently stands at ₦827.16 billion, which will be disbursed in four phased installments.

Unlocking New Infrastructure: The Egbin Expansion

The resolution of these debts is expected to trigger immediate industrial growth. For instance, Kola Adesina, Group Managing Director of Sahara Power Group, noted that clearing arrears allows companies to resume large-scale projects.

Consequently, Adesina confirmed that construction on the second phase of the Egbin Power Plant will begin as a direct result of this financial initiative. This expansion is vital for increasing Nigeria’s overall power generation capacity.

A “Market Reset” for Economic Growth

Special Adviser Olu Verheijen described the initiative as a “decisive reset” for the electricity market. Furthermore, the program combines debt resolution with broader financial reforms to ensure long-term stability.

“The Federal Government reaffirms its commitment to disciplined implementation,” Verheijen stated. She noted that the goal is to build a market capable of supporting Nigeria’s long-term economic expansion.

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