Nigeria Launches N590bn Power Sector Bond to Clear GENCO, Gas Arrears

The Federal Government of Nigeria has issued its debut bond under the Presidential Power Sector Debt Reduction Programme, raising N590 billion to settle verified arrears owed to power generation companies and gas suppliers.

The bond, guaranteed by the full faith and credit of the Federal Government, is part of a larger N4 trillion government-backed bond programme aimed at addressing the sector’s legacy debt overhang.

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The Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the initiative as a “strategic reset” rather than a bailout, emphasizing its potential to restore liquidity and confidence in the power sector.

The bond’s proceeds will be used to clear verified arrears, enabling power generation companies to stabilize operations and invest in new capacity.

The programme, approved by President Tinubu in August 2025, has attracted strong interest from institutional investors, with over 600 participants attending the inaugural investor forum. CardinalStone Partners Limited served as Lead Financial Adviser and Lead Issuing House.

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