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From Isaac Anumihe, Abuja
Nigeria Bulk Electricity Trading (NBET) has successfully completed the first tranche of its N4 trillion Power Sector Bond Programme, a move that toward stabilising the country’s electricity market.
In a statement, NBET confirmed the close of the first tranche under the N4 trillion Power Sector Multi-Instrument Issuance Programme. The inaugural bond issue totaled N501.021 billion, made up of N300 billion sold to the market, including asset managers, banks, pension funds and retail investors and N201.021 billion allocated to Power Generation Companies (GenCos) that had signed settlement agreements.
The seven-year bonds, issued by NBET Finance Company PLC, a special vehicle set up specifically for the transaction, are fully guaranteed by the Federal Government of Nigeria, giving investors additional confidence.
NBET said the completion of the first tranche is a key milestone for the programme and reflects strong market confidence in the government’s ongoing reforms of the power sector.
Commenting on the bond issue, NBET’s Acting Managing Director, Johnson Akinnawo, said:
“The successful close of the N501 billion bond represents a major step forward in resolving the long-standing challenges that have constrained the power sector for years. This intervention will significantly improve liquidity across the value chain, enable operators to stabilize their operations, and support renewed investment in the Nigerian power sector.”
The bond issue was led by CardinalStone Partners Limited, a top investment banking firm in Nigeria, acting as Lead Financial Adviser and Lead Issuing House. They worked closely with NBET and the Office of the Special Adviser on Energy, which handled settlement negotiations with the generation companies.
Akinnawo also acknowledged the support of the Presidential Power Sector Debt Reduction Committee, especially Finance Minister and Coordinating Minister of the Economy, Wale Edun, whose guidance was critical for the transaction’s success. Key government authorities, including the Debt Management Office, Central Bank of Nigeria, Securities & Exchange Commission, National Pensions Commission, Nigerian Revenue Service, and Nigerian Electricity Regulatory Commission, also played vital roles in facilitating the bond issue.
“These settlements form part of Phase 1 of the programme, which is designed to restore liquidity to the power sector, strengthen the balance sheets of critical market participants, and create a more sustainable foundation for electricity supply in Nigeria,” he added.
Akinnawo emphasized that NBET remains committed to working closely with the Federal Government, market participants, and advisers to ensure transparent and efficient deployment of bond proceeds in line with the objectives of the Presidential Power Sector Debt Reduction Programme. He also reaffirmed NBET’s dedication to reforms aimed at enhancing the long-term financial viability of Nigeria’s electricity market.
The successful bond issuance is expected to improve cash flow across the sector, stabilize power generation, and attract fresh investment, a move seen as crucial for addressing the electricity supply challenges that have plagued Nigeria for years.
With the first tranche complete, NBET is now set to roll out subsequent tranches of the N4 trillion programme, continuing its push to strengthen the power sector and support sustainable electricity supply for the country.
