By Admin
The Federal Government has successfully issued a five hundred and one billion Naira inaugural bond under the Presidential Power Sector Debt Reduction Programme, recording full subscription from investors.
The bond attracted strong interest from pension funds, banks, asset managers and other institutional investors, marking a major step toward resolving long-standing debts and restoring liquidity in the Nigerian Electricity Supply Industry.
The programme, championed by President Bola Ahmed Tinubu, is designed to clear payment arrears owed to power generation companies, which have constrained investment and growth in the sector for over a decade.
Speaking at the signing ceremony in Lagos, the President’s Special Adviser on Energy, Mrs. Olu-Arowolo Verheijen, described the initiative as a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.
The Series One bond issuance, executed by NBET Finance Company Plc, raised three hundred billion Naira from the capital market, with an additional two hundred and one billion Naira allotted to participating power generation companies.
Five power generation companies, representing fourteen power plants nationwide, have signed settlement agreements with the Nigerian Bulk Electricity Trading Plc, with a total negotiated settlement of over eight hundred and twenty-seven billion Naira to be paid in phases.
Proceeds from the bond will fund the first two instalments of payments, estimated at over four hundred and twenty-one billion Naira.
The Federal Government credited the success of the programme to the leadership of President Tinubu and the support of the Ministers of Finance and Power.
