… FG-backed bonds aim to raise ₦1.23trn by Q1 2026 for GenCos, gas suppliers, restore confidence — Verheijen

Oredola Adeola

Nigerian Bulk Electricity Trading (NBET) Plc, through its Special Purpose Vehicle (SPV), NBET Finance Company Plc, has issued a ₦590 billion Series 1 Power Sector Bond—the first issuance under the Presidential Power Sector Debt Reduction Programme.

The Series 1 bond represents the first phase of a broader programme aimed at raising a total of ₦1.23 trillion by the first quarter of 2026 to settle verified outstanding arrears owed to electricity generation companies and gas suppliers.

Mrs. Olubukola Verheijen, Special Adviser to the President on Energy, confirmed this during her remarks at a virtual forum for prospective investors convened by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy on Wednesday, December 10.

According to the Office of the Special Adviser to the President on Energy, the bond issuance by Nigerian Bulk Electricity Trading (NBET) Plc is an initiative backed by the full faith and credit of the Federal Government of Nigeria.

Advisors Reports gathered that CardinalStone Partners Limited is serving as the Lead Financial Adviser and Lead Issuing House for the transaction.

Speaking on the initiative, the Special Adviser to the President on Energy, explained that the Presidential Power Sector Debt Reduction Programme authorises the issuance of up to ₦4 trillion in government-backed bonds to address a long-standing debt overhang that has constrained new investments, weakened utility balance sheets, and undermined reliable electricity supply.

She described the programme as “the largest coordinated financial intervention in the history of Nigeria’s power sector,” stressing that it is not a bailout but a deliberate and strategic reset.

“This intervention clears verified arrears, restores liquidity, and provides generation companies with the stability they need to operate efficiently and invest with confidence,” Verheijen said.

“Clearing the debt will also create the breathing space required for operators to stabilise operations and plan new investments that will ultimately deliver more power to Nigerians.”

Providing context to the milestone, Verheijen noted that the Presidential Power Sector Debt Reduction Programme was approved by President Bola Ahmed Tinubu and endorsed by the Federal Executive Council (FEC) in August 2025, authorising the issuance of up to ₦4 trillion in government-backed bonds.

She added that the inaugural Investor Forum was held in December 2025, attracting over 600 participants, including representatives from banks, pension funds, insurance companies, issuing houses, asset managers, family offices, trustees, and other institutional investors, to present the bond issuance programme.

Before the end of the year, the ₦590 billion Series 1 Power Sector Bond was successfully issued under the broader ₦4 trillion Multi-Instrument Issuance Programme.

The bond issuance programme is expected to continue into 2026.