Successful N501bn issuance marks a milestone in Nigeria’s electricity reforms, boosts liquidity, and signals investor confidence.
Abuja: The Nigerian Bulk Electricity Trading (NBET) has announced the successful completion of the first tranche of its ambitious N4 trillion Power Sector Multi-Instrument Issuance Programme.
In a statement released Tuesday in Abuja, NBET confirmed that the inaugural N501.02 billion bond issue comprised a fully subscribed N300 billion bond offered to the market—including asset managers, banks, pension funds, and retail investors—alongside an additional N201.02 billion bond.
The bonds were issued to Power Generation Companies that had signed the settlement agreement.
The seven-year bonds, floated by NBET Finance Company PLC (a Special Purpose Vehicle established for this transaction), are fully guaranteed by the full faith and credit of the Federal Government of Nigeria.
Officials say completing this inaugural tranche represents a critical milestone in the programme’s implementation and reflects strong market confidence in the government’s reform agenda for the power sector.
Commenting on the bond issue, Acting Managing Director of NBET, Mr Johnson Akinnawo, described the successful close of the N501 billion bond as a major breakthrough in resolving long-standing challenges that have constrained the power sector for years.
“This intervention will significantly improve liquidity across the value chain, enable operators to stabilise their operations, and support renewed investment in the Nigerian Power Sector,” Akinnawo said.
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 execute the N501,021,000,000 Series 1 Bond Issue, working closely with NBET.
NBET served as the transaction sponsor, while the Office of the Special Adviser on Energy to President Bola Tinubu spearheaded settlement negotiations with Generation Companies and championed the PPSDRP initiative.
Akinnawo further acknowledged the support of members of the Presidential Power Sector Debt Reduction Committee, particularly Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, whose leadership and backing provided the foundation for the success.
He also commended the roles of key government authorities and regulators—including the Debt Management Office, Central Bank of Nigeria, Securities and Exchange Commission, National Pensions Commission, Nigerian Revenue Service, and the Nigerian Electricity Regulatory Commission—whose contributions facilitated enhancements to the bond issue.
These settlements form part of Phase 1 of the programme, designed to restore liquidity to the power sector, strengthen the balance sheets of critical market participants, and create a stronger foundation for electricity supply in Nigeria.
Akinnawo reaffirmed NBET’s commitment to working closely with the Federal Government, market participants, and transaction advisers to ensure transparent and efficient deployment of proceeds, in line with the objectives of the Presidential Power Sector Debt Reduction Program.
He stressed that NBET remains dedicated to market reforms aimed at enhancing the long-term financial viability of Nigeria’s electricity market.
