By Gwamkat Dalung
The Federal Government of Nigeria has successfully issued a N501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), with 100% subscription from pension funds, banks, and other investors.
This marks a significant step towards addressing legacy debts in the power sector, boosting liquidity, and enhancing confidence in the Nigerian Electricity Supply Industry (NESI).
The programme, championed by President Bola Ahmed Tinubu, aims to resolve long-standing payment arrears owed to power generation companies, which have hindered investment and liquidity in the sector for over a decade.
The bond issuance, which closed at N501 billion, includes N300 billion raised from the capital markets and N201 billion allocated to power generation companies.
The proceeds will be used to settle verified receivables for electricity supplied between February 2015 and March 2025, with an initial payment of N421.42 billion to participating power generation companies.
The settlement is expected to improve liquidity, unlock investment, and provide a more reliable electricity supply across the country.
The PPSDRP is part of broader financial and structural reforms aimed at creating a sustainable and financially viable electricity market in Nigeria.
