The Federal Government has issued the first bond under the Presidential Power Sector Debt Reduction Programme, marking a major step in efforts to address longstanding payment arrears in Nigeria’s electricity industry.
The Presidency disclosed this on Friday in a statement signed by the Team Lead, Communications, Office of the Special Adviser to the President on Energy, Senan Murray.
The N590 billion Series 1 Power Sector Bond was issued by NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading Plc.
The bond is backed by the full faith and credit of the Federal Government of Nigeria, according to a statement from the Office of the Special Adviser to the President on Energy.
According to statement, T=the issuance represents the first phase of a wider bond programme that targets N1.23 trillion by the first quarter of 2026.
It added that proceeds from the bonds will be used to settle verified arrears owed to power generation companies and gas suppliers, obligations that have weighed heavily on the sector’s liquidity and investment outlook.
Speaking at a recent investor forum, the Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, said the programme is designed to restore confidence and financial stability in the sector.
She noted that clearing verified arrears would help generation companies stabilise operations and plan new investments needed to improve power supply nationwide.
“This is not a bailout; it is a strategic reset, one that clears verified arrears, restores liquidity, and gives power generation companies the footing they require to operate and invest with confidence.
“Clearing the debt will create breathing room for operators to stabilise operations and plan new investments that will help deliver more power to Nigerians,” she said.
The Presidential Power Sector Debt Reduction Programme seeks to resolve what officials describe as a legacy debt overhang.
The debt burden has constrained new investment, weakened utility balance sheets, and undermined the delivery of reliable electricity across the country.
The programme has been described as the largest coordinated financial intervention in the history of Nigeria’s power sector.
Earlier in October, Naijaonpoint reported that FG, Generation Companies (GenCos) and gas suppliers had concluded implementation frameworks for the N4 trillion government-backed bond.
He acknowledged the historical liabilities inherited from previous administrations and assured the GenCos that his government would approach the issue with transparency and fairness.