FG’s N501bn power sector bond records full subscription

The Federal Government has announced that its N501 billion inaugural tranche under the Presidential Power Sector Debt Reduction Programme has recorded 100 per cent subscription from investors.

The development was disclosed in a statement issued on Tuesday by the Special Adviser to the President on Energy, Olu Verheijen.

According to the statement, the bond issuance, which forms part of efforts to address longstanding debts in the power sector, attracted participation from pension funds, banks, asset managers and other investors.

The government said the programme is aimed at resolving legacy payment arrears owed to power generation companies, restoring liquidity and strengthening confidence in the Nigerian Electricity Supply Industry.

Speaking at the bond issuance signing ceremony in Lagos on 27 January 2026, Verheijen said the initiative represents a major reset of the electricity market.

“The Programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms,” she said.

The statement explained that the Series 1 Power Sector Bond Issuance, executed by NBET Finance Company Plc, closed at ₦501 billion, comprising ₦300 billion raised from the capital market and ₦201 billion allotted to participating power generation companies.