The Nigeria government has issued a N501 billion bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), recording 100% subscription from pension funds, banks, asset managers, and other investors.
This was disclosed by Olu Arowolo Verheijen, Special Adviser to the President on Energy, on Tuesday during a ceremony in Lagos.
The programme is aimed at addressing verified debts owed to power generation companies (GenCos) for electricity supplied between February 2015 and March 2025.
“The Federal Government of Nigeria has successfully issued a N501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), recording 100% subscription from pension funds, banks, and other investors,” Verheijen said.
The bond forms part of the government’s effort to settle long-standing payment arrears to GenCos.
Details on the bond issuance
Verheijen noted that the Series 1 issuance, executed by NBET Finance Company Plc, raised N300 billion from the capital markets. Another N201 billion was allotted to participating power generation companies.
Under the programme, Five GenCos — First Independent Power Limited (FIPL) Geregu Power Plc, Ibom Power Company, Mabon, and NDPHC representing 14 power plants nationwide, have signed settlement agreements with NBET.
The total negotiated settlement for these companies stands at N827.16 billion, payable in four instalments.
Proceeds from the Series 1 issuance will fund the first and second instalments, totaling N421.42 billion, for companies with signed agreements. Payments will be made through a combination of cash and notes, Verheijen added.
Programme scope and implementation
The PPSDRP settles verified receivables for electricity supplied between February 2015 and March 2025.
According to documents provided by NBET, the programme covers payments for 290,644.84 GWh of electricity billed. It involves 4,483.60 MWh/h of generation capacity and affects companies serving 12.03 million registered customers nationwide.
Verheijen said the government plans for other power generation companies to participate in future phases of the programme. Additional tranches will be issued in subsequent phases to settle remaining arrears.
What you should know
NDPHC Managing Director Jennifer Adighije disclosed in May 2025 that the company was owed approximately N600 billion by the Nigerian Bulk Electricity Trading (NBET) and other bilateral entities.
The Transmission Company of Nigeria (TCN) reported in June 2025 that it was owed N457 billion for services rendered in the electricity sector, according to its Managing Director, Sule Abdulaziz.
In 2025, the Federal Government approved a N4 trillion Power Sector Bond Programme to settle verified arrears owed to generation companies and gas suppliers, according to the Federal Ministry of Information.
CardinalStone Partners Limited, a Nigerian investment banking firm, acted as Lead Financial Adviser and Lead Issuing House, working with NBET and the Office of the Special Adviser on Energy to complete the Series 1 issuance, Verheijen said.
