The Nigerian government said its recently issued N501 billion bond, is under the presidential power sector debt reduction program and has recorded a significant 1000 percent subscription.
The federal government stated that pension funds, banks, asset managers, and other investors subscribed massively for the bond aimed towards resolving legacy debts, restoring liquidity, and strengthening confidence in the Nigerian Electricity Supply Industry (NESI).
Speaking at the bond issuance signing ceremony in Lagos on 27 January 2026, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, stated that the program represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.
“The signing follows the successful completion of Series 1 Power Sector Bond Issuance by NBET Finance Company Plc. Series 1 issuance closed at N501 billion, comprising N300 billion raised from the capital markets and N201 billion in bonds allotted to participating power generation companies, reflecting strong investor confidence in the reform agenda,” she noted.
Under the program, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with power generation companies.
To date, five power generation companies, representing fourteen power plants nationwide, First Independent Power Limited, FIPL, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited, NDPHC, have executed Settlement Agreements with the Nigerian Bulk Electricity Trading Plc, NBET. The total negotiated settlement amount for these companies stands at ₦827.16 billion, to be paid in four (4) phased installments.
Proceeds from Series 1 issuance will fund the first and second installment payments to participating power generation companies with signed Settlement Agreements, estimated at N421.42 billion, representing approximately 50 percent of the total negotiated settlement amount. The payment for this initial phase will be made through a mix of cash and notes.
“The Federal Government reaffirms its commitment to disciplined implementation of the program, and we look forward to the participation of other power generation companies as part of our broader reforms aimed at building a financially sustainable electricity market that is capable of supporting Nigeria’s long-term economic growth,” she said.
Recall that in April last year, generation companies threatened the country’s power industry over the N4 trillion in unpaid legacy debt.
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