FG issues N590 billion power sector bond to clear GENCO, gas arrears

The Federal Government has issued the first bond under the Presidential Power Sector Debt Reduction Programme, marking a major step in efforts to address longstanding payment arrears in Nigeria’s electricity industry.

The Presidency disclosed this on Friday in a statement signed by the Team Lead, Communications, Office of the Special Adviser to the President on Energy, Senan Murray.

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 backed by the full faith and credit of the Federal Government of Nigeria, according to a statement from the Office of the Special Adviser to the President on Energy.

What the Presidency is saying 

According to statement, T=the issuance represents the first phase of a wider bond programme that targets N1.23 trillion by the first quarter of 2026.

It added that proceeds from the bonds will be used to settle verified arrears owed to power generation companies and gas suppliers, obligations that have weighed heavily on the sector’s liquidity and investment outlook.

Speaking at a recent investor forum, the Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, said the programme is designed to restore confidence and financial stability in the sector.

She noted that clearing verified arrears would help generation companies stabilise operations and plan new investments needed to improve power supply nationwide.

“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.  (Nairametrics)