The Special Adviser to the President on Energy, Mrs. Olu Arowolo Verheijen, has commended the federal government’s issuance of the N590 billion Series 1 Power Sector Bond, describing the transaction as a critical step towards restoring financial stability and investor confidence in Nigeria’s electricity market.
The bond, issued by NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading (NBET) Plc, is backed by the full faith and credit of the federal government and represents the inaugural tranche under the Presidential Power Sector Debt Reduction Programme. CardinalStone Partners Limited served as Lead Financial Adviser and Lead Issuing House.
In a statement, Verheijen was quoted to have spoken at an investor forum held in Lagos to formally present the bond issuance programme to domestic institutional investors, noting that the intervention was designed to tackle the sector’s longstanding liquidity constraints without resorting to ad-hoc bailouts.
“This is not a bailout; it is a strategic reset. By clearing verified arrears, we are restoring liquidity and giving 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.”
The Series 1 issuance marks the commencement of the first phase of a broader multi-instrument programme targeted at raising N1.23 trillion by the first quarter of 2026, with proceeds to be applied to the settlement of verified obligations owed to generation companies and gas suppliers. Overall, the programme authorises the issuance of up to N4 trillion in government-backed bonds to address legacy debts that have weakened utility balance sheets and constrained new investment.
More than 600 participants from banks, pension funds, insurance companies, asset managers, issuing houses, trustees, and family offices attended the inaugural forum, highlighting strong appetite from long-term investors for government-backed infrastructure-linked assets.
The Presidential Power Sector Debt Reduction Programme was approved by President Bola Tinubu and endorsed by the Federal Executive Council in August 2025. With the launch of the N590 billion Series 1 bond in December, the federal government plans to continue issuances through 2026, positioning the programme as one of the most ambitious financial interventions ever undertaken in Nigeria’s power sector.
Nume Ekeghe
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