Stakeholders upbeat as NBET completes first tranche of N4trn power sector bond
Stakeholders have expressed confidence over an improvement in the energy sector following the completion of the first tranche of N4 trillion Power Sector Bond Programme in ongoing efforts to strengthen the financial stability of Nigeria’s power sector. They stated this during the signing ceremony of the successful close of the first tranche under the N4,000,000,000,000 […]
Nigerian Bulk Electricity Trading (NBET)
Stakeholders have expressed confidence over an improvement in the energy sector following the completion of the first tranche of N4 trillion Power Sector Bond Programme in ongoing efforts to strengthen the financial stability of Nigeria’s power sector.
They stated this during the signing ceremony of the successful close of the first tranche under the N4,000,000,000,000 Nigerian Bulk Electricity Trading PLC (NBET) Power Sector Multi-Instrument Issuance Programme.
The inaugural N501.021 billion issuance comprises a fully subscribed N300 billion bond raised from the capital market—attracting asset managers, banks, pension funds, and retail investors—and an additional N201.021 billion bond issued to Power Generation Companies (GenCos) that have executed the Settlement Agreement under the Presidential Power Sector Debt Reduction Programme (PPSDRP).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, represented by Director-General of the Debt Management Office of Nigeria (DMO), Patience Oniha, described the completion as an assurance of the federal government commitment to the power sector and to the wider economy.
He emphasised on the need to deploy innovative financial solutions to resolve systemic challenges and focused on restoring liquidity, confidence, and discipline across the electricity market.
“By settling legacy debts in a structured manner in the manner of the Power Sector Bonds, we are enabling generation companies to stabilize operations, improve maintenance, and attract new investments, all of which are critical to improving power supply nationwide,” he said.
The Special Adviser to the President on Energy, Olu Verheijen said the significance of the completion of the first tranche of the 4 trillion Power Sector Bond Programme lies not only in clearing the past, but in what it unlocks going forward.
“Resolving these liabilities restores liquidity across the value chain, strengthens payment certainty for gas suppliers, and creates the financial headroom required for operators to stabilise assets, improve availability, and plan new investment,” she said.
She stressed the strong and oversubscribed response to the inaugural issuance is an early signal of confidence, saying it is not in rhetoric, but in structure, governance, and execution.
“Debt resolution, however, only matters if new liabilities do not accumulate behind it. For that reason, this Programme is explicitly linked to broader market reforms.
“We have begun transitioning the most reliable segment of the market to tariffs that better reflect the cost of service, with a clear pathway toward a consumption-based framework that protects low-income households while restoring cost recovery,” she said.
Commenting on the Bond Issue, the Acting Managing Director of NBET, Johnson Akinnawo said the successful completion of this inaugural tranche marks a critical milestone in the implementation of the Programme and reflects strong market confidence in the Government’s reform agenda for the power sector.
“The successful close of the N501 billion bond represents a major step forward in resolving the long-standing challenge that has constrained the power sector for years. This intervention will significantly improve liquidity across the value chain, enable operators to stabilize their operations and support renewed investment in the Nigerian Power Sector.”
He added that NBET remains committed to working closely with the Federal Government, market participants and transaction advisers to ensure the transparent and efficient deployment of proceeds in line with the objectives of the Presidential Power Sector Debt Reduction Programme (PPSDRP).
CardinalStone Partners Limited, a leading Investment banking firm in Nigeria, led the consortium of appointed professional parties as Lead Financial Adviser and Lead Issuing House to successfully execute the N501,021,000,000 Series 1 Bond Issue working closely with the Nigerian Bulk Electricity Trading PLC that acted as Sponsor on the Transaction and the Office of the SA Energy that led the Settlement negotiations and engagements with the Generation Companies including championing the PPSDRP initiative.