…Moves to raise N729bn in fresh power sector bond
By Seun Ibiyemi
The Federal Government on Tuesday disclosed that it has paid N333bn to eight electricity generation companies under the first phase of its power sector debt settlement programme, as it prepares to raise an additional N729bn to address outstanding liabilities and boost liquidity in the electricity market.
The government said the payments, which covered 17 power plants, were made under the first tranche of the Power Sector Multi-Instrument Issuance Programme and formed part of broader efforts to clear the long-standing debts owed to power generation companies.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this at the Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Series II Bond Issue Investors’ Forum held in Abuja.
According to her, the Tinubu administration had fulfilled all obligations under the first issuance, including the payment of the maiden bond coupon, thereby strengthening investor confidence in Nigeria’s power sector.
“Every successful capital market tells the same story. Investors return where governments keep their promises,” Verheijen said.
She noted that the government had deliberately chosen to demonstrate credibility and disciplined execution before returning to the capital market for another round of fundraising.
“Through bold policy decisions and disciplined execution, we are converting an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust,” she added.
Verheijen explained that the Federal Government deployed about N501bn under Series I of the programme in February 2026, comprising N300bn in cash and N201bn in non-cash bond instruments.
According to her, the intervention addressed about 22 per cent of the settlement obligations covered by executed agreements, with the balance expected to be settled through Series II and subsequent issuances.
“Series I delivered on its promise. In February 2026, the Federal Government deployed approximately N501bn, addressing approximately 22 per cent of the settlement obligations under executed settlement agreements,” she said.
She added that the government had already paid N333bn to participating generation companies and honoured its commitment to investors by paying the first bond coupon of about N63.5bn on July 14, 2026.
“We have met our obligations on schedule. The first Series I coupon, about N63.5bn, was paid in full on July 14, 2026,” Verheijen stated.
The presidential aide argued that the settlement programme was not merely about restructuring debts but about transforming legacy liabilities into fresh liquidity capable of supporting investments across the electricity value chain.
“We are converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity,” she said.
Verheijen maintained that the Presidential Power Sector Financial Reforms Programme, launched under the Renewed Hope Agenda, was designed to restore confidence in the electricity market and improve operational performance across the sector.
The Acting Managing Director and Chief Executive Officer of NBET, Johnson Akinnawo, said the success of the first issuance had demonstrated that Nigerian power sector debt instruments could attract investor confidence.
“When we came to the market with Series I, we did not present it as a routine capital raise.
We presented it as a test of a proposition, that Nigerian legacy power sector debt could be resolved through disciplined, transparent capital market instruments rather than endless promises,” Akinnawo said.
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He added that the impact of the programme was already evident in improved liquidity across the power value chain.
“The evidence of your trust is visible today in improved liquidity across the value chain. Nigerian power sector paper has proven that it is bankable,” he stated.
Akinnawo disclosed that the government is seeking to raise about N729bn under Series II of the programme to continue settling verified obligations owed to generation companies and further stabilise the electricity market.
The Power Sector Multi-Instrument Issuance Programme was established under the Presidential Power Sector Financial Reforms Programme to tackle the legacy debts that have constrained investment and liquidity in Nigeria’s electricity sector.
Analysts say the success of the bond programme could play a critical role in improving the financial viability of the power industry and attracting fresh private-sector investment into the electricity value chain.
