The Federal Government has launched the first bond under the Presidential Power Sector Debt Reduction Programme, a key move aimed at tackling longstanding payment arrears in Nigeria’s electricity sector.

The Presidency announced the development on Friday in a statement signed by Senan Murray, Team Lead of Communications at the Office of the Special Adviser to the President on Energy.
The N590 billion Series 1 Power Sector Bond was issued by NBET Finance Company Plc, a special purpose vehicle of the Nigerian Bulk Electricity Trading Plc.

The bond is fully backed by the Federal Government of Nigeria, the Office of the Special Adviser to the President on Energy confirmed.

Presidency’s Statement
The issuance marks the first phase of a broader bond programme, which aims to raise N1.23 trillion by the first quarter of 2026.

Proceeds from the bonds will be used to settle verified arrears owed to power generation companies and gas suppliers—debts that have long strained the sector’s liquidity and investment climate.

At a recent investor forum, the Special Adviser to the President on Energy, Mrs. Olu Arowolo Verheijen, emphasized that the programme is intended to restore confidence and financial stability within the power sector.

“This is not a bailout; it is a strategic reset, one that clears verified arrears, restores liquidity, and gives 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,” she said.

The Presidential Power Sector Debt Reduction Programme aims to tackle what officials describe as a legacy debt overhang.
This accumulated debt has limited new investment, strained utility balance sheets, and hampered the delivery of reliable electricity nationwide.
The programme is being hailed as the largest coordinated financial intervention in the history of Nigeria’s power sector.