The Federal Government has announced the successful issuance of a ₦501 billion inaugural bond for electricity Generation Companies (Gencos) under the Presidential Power Sector Debt Reduction Programme (PPSDRP), recording 100 per cent subscription from pension funds, banks, asset managers and other institutional investors.
Speaking on the development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the strong market response reflects renewed investor confidence in the government’s ongoing economic reforms and its commitment to stabilising Nigeria’s electricity value chain. He noted that the bond issuance is expected to improve liquidity in the power sector and attract long-term private capital.
As part of the programme, five Gencos participating in the debt resolution initiative have signed Final Settlement Agreements (FSAs) with a total negotiated value of ₦827.16 billion. The agreed sums will be paid in four instalments, contributing to the settlement of an estimated ₦4 trillion legacy debt owed by the government to power generation companies for more than a decade.
The PPSDRP, initiated by the Bola Tinubu administration, is aimed at resolving long-standing payment arrears that have constrained liquidity, weakened balance sheets, and discouraged investment across Nigeria’s power sector value chain.
Edun, who was represented at the event by the Director-General of the Debt Management Office (DMO), Patience Oniha, said the bond issuance under the ₦4 trillion Power Sector Multi-Instrument Issuance Programme goes beyond a routine financing transaction. According to him, it represents a critical step toward restoring confidence, strengthening sector fundamentals, and putting Nigeria’s electricity market on a more sustainable footing.
Stakeholders say the success of the inaugural bond could pave the way for additional issuances, accelerating efforts to resolve power sector debts and improve electricity supply nationwide.
