•To unlock 4,483MW generation capacity, clear backlog since 2015

The Federal Government has signed and issued a N501 billion Series 1 power sector bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), aimed at settling outstanding debts owed to electricity generation companies (GenCos), as part of renewed efforts to stabilise Nigeria’s power value chain, with plans already underway to launch a N730 billion Series 2 by early March 2026.

The bond recording 100 per cent subscription from pension funds, banks, asset managers and other investors, and marking a significant step towards resolving legacy debts, restoring liquidity, and strengthening confidence in the Nigerian Electricity Supply Industry (NESI).

The Programme, championed by President Bola Ahmed Tinubu, is designed to address long-standing payment arrears owed to power generation companies, which, for over a decade, constrained liquidity, weakened balance sheets and discouraged investment across the power sector value chain.

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.

The Series 1 programme, approved by the Federal Executive Council (FEC) on August 13, 2025, and opened to investors on December 19, 2025, closed on January 8, 2026, with a total issuance of N501 billion.

Speaking at the bond issuance signing ceremony in Lagos yesterday, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, stated that the Programme represented a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.

CardinalStone Partners Limited, a leading Investment banking firm in Nigeria, led the consortium of appointed professional parties as Lead Financial Adviser and Lead Issuing House to successfully execute the Series 1 Bond Issue.

According to the Group Managing Director of Sahara Power Group, Kola Adesina, who owns five power plants, capital formation could only come when there is confidence, when a line of sight can truly be seen,and recover investments previously made.

Minister of Finance, Mr Wale Edun, also highlighted the programme’s governance framework, noting that the Ministry of Finance, working closely with NBET and other stakeholders, has ensured a strong, well-safeguarded macroeconomic stance.

Speaking at the signing ceremony, the Group Managing Director of CardinalStone Partners, Michael Nzewi, recounted the programme’s journey, noting that initial engagements began in November 2024.

Looking ahead, Series 2 of the programme is scheduled for launch by early March 2026, initially planned at N640 billion but now expected to be resized to N730 billion due to available non-cash allocation.