The Federal Government has recorded a full subscription for its N501 billion inaugural power sector bond issued under the Presidential Power Sector Debt Reduction Programme (PPSDRP), signalling strong investor confidence in ongoing electricity market reforms.
The development was disclosed in a statement issued on Tuesday by the Special Adviser to the President on Energy, Mrs. Olu Arowolo Verheijen, via X (formerly Twitter).
The bond issuance is aimed at addressing long-standing payment arrears owed to power generation companies, restoring liquidity across the sector and strengthening confidence in the Nigerian Electricity Supply Industry (NESI).
The issuance follows years of liquidity challenges in the power sector and forms part of the broader FG’s reforms to stabilise the electricity market and unlock new investments.
Mrs. Verheijen said the Programme represents a major reset of Nigeria’s electricity market, combining debt resolution with wider financial and structural reforms.
She stated that the Programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.
Mr. Kola Adesina, Group Managing Director of Sahara Power Group, said: “Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made.”
He added, “Once this process is over, construction will commence immediately on the second phase of our Egbin Power Plant.”
According to stakeholders, clearing legacy debts is expected to restore confidence among investors and encourage fresh capital into power generation and related infrastructure.
The Series 1 Power Sector Bond Issuance was completed by NBET Finance Company Plc, closing at N501 billion, made up of N300 billion raised from the capital markets and N201 billion in bonds allotted to participating power generation companies.
Under the PPSDRP, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with generation companies.
The initial payments will be made through a mix of cash and notes, easing immediate liquidity pressures on the companies.
By clearing historic arrears, the Programme is expected to strengthen the balance sheets of power generation companies and improve their ability to meet operating and debt obligations.
The Federal Government said the initiative also reinforces fiscal discipline through validated claims, negotiated settlements and transparent capital market financing.
In December, Naijaonpoint reported that the Federal Government issued the first bond under the Presidential Power Sector Debt Reduction Programme, marking a major step toward resolving payment arrears in Nigeria’s electricity industry.