The Federal Government of Nigeria has issued a ₦590 billion bond to address longstanding debts in the power sector, marking a major step under the Presidential Power Sector Debt Reduction Programme.
The bond was issued by NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading Plc (NBET), and is fully guaranteed by the Federal Government. Proceeds from the bond will be used to settle verified payment arrears owed to power generation companies (GenCos) and gas suppliers, helping to restore financial stability in the sector.
Officials describe this move as a strategic reset rather than a bailout. It is expected to improve liquidity in the power market, enable GenCos to stabilise operations, and attract further investment into Nigeria’s electricity value chain.
This issuance represents Phase 1 of a broader initiative that aims to raise around ₦1.23 trillion by early 2026, eventually forming part of a ₦4 trillion bond programme designed to strengthen the sector.
The power sector has long been challenged by payment arrears and funding shortfalls, largely due to under‑remittances from distribution companies. Prior efforts to resolve these debts, including government proposals for partial debt forgiveness, were met with resistance from some GenCos.
The government’s latest bond issuance is a key step toward improving liquidity, enhancing power supply reliability, and boosting investor confidence in Nigeria’s electricity industry. Visit www.jocomms.com for more news.