Tinubu’s ₦501bn Power Bond hits 100% Subscription, boosts Investor Confidence

The Federal Government has recorded a major milestone in its electricity market reform drive with the successful issuance of a ₦501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), achieving a full 100 per cent subscription from pension funds, banks, asset managers and other institutional investors.

The landmark transaction, championed by Bola Ahmed Tinubu, is aimed at resolving long-standing payment arrears owed to power generation companies, a burden that for more than a decade constrained liquidity, weakened balance sheets and discouraged fresh investment across the Nigerian Electricity Supply Industry (NESI).

Speaking at the bond issuance signing ceremony in Lagos on January 27, 2026, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the programme as a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms designed to restore confidence and sustainability.

The issuance followed the successful completion of Series 1 Power Sector Bond Issuance by Nigerian Bulk Electricity Trading Plc through its finance subsidiary.

The Series 1 bond closed at ₦501 billion, made up of ₦300 billion raised from the capital market and ₦201 billion in bonds allotted to participating generation companies, reflecting strong investor confidence in the government’s reform agenda.

Under the programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with power generation companies. Five GenCos,  First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited and Niger Delta Power Holding Company Limited, representing 14 power plants nationwide, have so far executed settlement agreements with NBET.

The total negotiated settlement amount for the companies stands at ₦827.16 billion, to be paid in four phased instalments.

Proceeds from the Series 1 issuance will fund the first and second instalment payments, estimated at ₦421.42 billion, representing about 50 per cent of the negotiated settlement amount. Payments for this initial phase will be made through a mix of cash and notes.

Reacting to the development, Kola Adesina, Group Managing Director of Sahara Power Group, said the bond programme had restored investor confidence in the sector.

He noted that the resolution of legacy debts would enable fresh capital deployment, disclosing that construction of the second phase of the Egbin Power Plant would commence once the settlement process is concluded.

By clearing historic arrears, the PPSDRP is expected to significantly improve liquidity for generation companies, strengthen their ability to meet operating and debt obligations, unlock new investments and support more reliable electricity supply to homes and businesses.

It also reinforces fiscal discipline through validated claims, negotiated settlements and transparent capital market financing.

When fully completed, the programme is projected to impact 4,483.60 MWh/h of electricity generation capacity, finalise settlement for 290,644.84 GWh of electricity billed since 2015, and provide a stronger foundation for capacity expansion by companies serving about 12.03 million active registered customers nationwide.

Verheijen acknowledged the support of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Power, Adebayo Adelabu, as well as the Debt Management Office, the Central Bank of Nigeria, the National Pension Commission and other key stakeholders for their roles in the successful bond issue.

The transaction was led by CardinalStone Partners Limited as Lead Financial Adviser and Lead Issuing House, working alongside NBET as sponsor and the Office of the Special Adviser on Energy, which coordinated settlement negotiations with generation companies.

Reaffirming government commitment, Verheijen said the Federal Government remained focused on disciplined implementation of the programme and looked forward to the participation of more generation companies as part of broader reforms aimed at building a financially sustainable electricity market capable of supporting Nigeria’s long-term economic growth.