The Federal Government has announced that its inaugural ₦501 billion tranche under the Presidential Power Sector Debt Reduction Programme has achieved 100% subscription from investors.
The disclosure was made in a statement on Tuesday by the Special Adviser to the President on Energy, Olu Verheijen, who described the initiative as a major reset of Nigeria’s electricity market.
“The Programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms,” Verheijen said at the bond issuance signing ceremony in Lagos on January 27, 2026.
The Series 1 Power Sector Bond Issuance, executed by NBET Finance Company Plc, closed at ₦501 billion.
This comprised ₦300 billion raised from the capital market and ₦201 billion allotted to participating power generation companies.
The programme is designed to resolve legacy arrears owed to power generation companies, restore liquidity, and strengthen investor confidence in the Nigerian Electricity Supply Industry (NESI).
Under the scheme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with generation companies.
Settlement Agreements
So far, five generation companies — First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited — have executed settlement agreements with the Nigerian Bulk Electricity Trading Plc (NBET).
The total negotiated settlement amount stands at ₦827.16 billion, to be paid in four phased instalments.
Proceeds from the Series 1 issuance will fund the first and second instalments, estimated at ₦421.42 billion, representing about 50% of the total settlement amount.
Reacting to the development, Kola Adesina, Group Managing Director of Sahara Power Group, said the move would restore investor confidence.
“Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made,” Adesina said.
He added: “Because we were being owed so much, it was a bit of a problem for us to put in more money. But last year we took the bull by the horns, based on President Bola Ahmed Tinubu’s commitment in resolving the legacy issues.”
Adesina confirmed that once the process is completed, construction will begin on the second phase of the Egbin Power Plant.
The Federal Government noted that clearing historic arrears will improve liquidity for generation companies, unlock new investments, and support a more reliable electricity supply nationwide.
Verheijen reaffirmed government’s commitment to disciplined implementation of the programme, saying: “The Federal Government reaffirms its commitment to disciplined implementation of the Programme, and we look forward to the participation of other power generation companies, as part of our broader reforms aimed at building a financially sustainable electricity market that is capable of supporting Nigeria’s long-term economic growth.”
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