The Federal Government of Nigeria has launched a N590 billion Series 1 Power Sector Bond. It marks the first phase of efforts to settle legacy arrears owed to power generation companies and gas suppliers.
Okay News reports that the bond was issued by NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading Plc (NBET). The instrument carries full federal government backing.
Proceeds will clear verified outstanding payments. These obligations have long constrained liquidity and investment in the electricity value chain.
Team Lead for Communications in the Office of the Special Adviser to the President on Energy, Senan Murray, announced the issuance. It forms part of the Presidential Power Sector Debt Reduction Programme.
Special Adviser Olu Arowolo Verheijen described the initiative as a strategic reset. It aims to restore financial stability without constituting a bailout.
“This is not a bailout; it is a strategic reset, one that clears verified arrears, restores liquidity, and gives power generation companies the footing they require to operate and invest with confidence,” Verheijen stated.
“Clearing the debt will create breathing room for operators to stabilise operations and plan new investments that will help deliver more power to Nigerians,” she added.
The broader programme targets N1.23 trillion in bond issuances by the first quarter of 2026. Overall approval covers up to N4 trillion.
CardinalStone Partners Limited served as lead financial adviser and issuing house for the Series 1 bond. Further tranches are planned through 2026.
President Bola Tinubu approved the framework in August 2025. The Federal Executive Council endorsed it subsequently.
The intervention addresses historical liabilities inherited by the current administration. It seeks to improve sector viability and reliable power supply nationwide.
This coordinated effort represents the largest financial restructuring in Nigeria’s power sector history. It supports enhanced generation capacity and operational sustainability.
The bond issuance signals renewed commitment to resolving structural challenges hindering electricity delivery across Africa’s most populous nation.
