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Federal Government of Nigeria Issues Debut Bond under Presidential Power Sector Debt Reduction Programme

19 December 2025 —The Office of the Special Adviser to the President on Energy welcomes the issuance of the first bond under the Presidential Power Sector Debt Reduction Programme.

Issued by NBET Finance Company Plc, a Special Purpose Vehicle (“SPV”) of the Nigerian Bulk Electricity Trading (NBET) Plc, the ₦590 billion Series 1 Power Sector Bond is guaranteed by the full faith and credit of the Federal Government of Nigeria.

@CardinalStoneNG is the Lead Financial Adviser and Lead Issuing House.

This marks the commencement of the first phase of the bond issuance, which aims to raise 1.23 trillion Naira by the first quarter of 2026, for the payment of verified arrears owed to generation companies and gas suppliers.

https://x.com/EnergyReformsNG/status/2002033441525633516

Since the buyback announcement, the only 2 holdings that have reduced have been RWC Asset advisors and Premier Miton. At the time of the announcement they held approx. 127m between them (RWC 50m & Miton 77m), so seems plausible they will be making up the bulk of the proposed 143.5m buyback amount.

*Miton, not Ingalls

Just looking back at my records:

On 10th September RWC had 49,923,715 which was 3.1% of a total share amount of 1,610,329,397.

On the 28th they presumably dropped off the list as the share amount increased to 2,120,654,235 which would have put their holding at 2.35%

Apologies, my mistake, they dropped off the list at the last notification, and not this one.

Yes, Save have said they plan to buyback 143.5m shares from certain investors, so 77m from Ingalls could conceivably be part of that.

Yes, Miton and RWC Asset Advisors have dropped below 3% from the last update

*USD832 MILLION

Scotpak, also note in the Punch article

'It further noted that “oversubscription may be absorbed at the discretion of the issuer up to a maximum of N1,230,000,000,000 approved for Phase 1 of this transaction. The issuer reserves the right to increase the size of the non-cash bonds to be issued to the GenCos under any Series or accommodate additional allotments as may be required.” '

That equates to approx USD9832 in total.

https://punchng.com/fg-issues-n590bn-bond-to-settle-gencos-n4tn-debts/

It does noix, but most likely the reason for doing it in a staggered way is to allow Nigeria to fund the interest payments on the bond. I doubt very much they could issue another 2.6bn USD bond in one go and not struggle to fund it.

Thanks Scotpak, it seems a decent first step that ringfences the money for the gencos and gas suppliers which is positive. Hopefully as liquidity is introduced back into the sector they'll be able to announce further bond issuances. Realistically it's likely to be over a couple of years I reckon before debts would be fully paid.

Whoops, double counted - equates to about USD380M

From Punch

'The Federal Government has begun the process of repaying the N4tn debt owed to Power Generation Companies with the launch of a N590bn first-tranche bond issuance. The initial tranche, part of a wider N4tn NBET Finance Company Plc Bond Programme, is guaranteed by the Federal Government. It comprises N300bn in cash bonds to be issued to the market and N290bn in non-cash bonds to be directly allotted to GenCos on identical terms.

PUNCH Online learnt that details contained in the bond term sheet obtained by our correspondent on Tuesday revealed that the Series 1 bond will be issued between November and December 2025.

CardinalStone Partners Limited is serving as the lead issuing house and financial adviser.

According to the term sheet, “Series 1 Tranche A involves N300bn issued to the market for cash, while N290bn under Tranche B is allotted to the GenCos on identical terms. The bond will be issued between November and December, with a seven-year tenor on a fixed-rate coupon, redeemed on an amortising basis and paid semi-annually in arrears.”

The bond issuance marks a major step by President Bola Tinubu’s administration to resolve what experts describe as one of the most crippling financial crises in Nigeria’s power sector.

The Series 1 bond carries a seven-year tenor, a fixed coupon rate, and semi-annual interest payments, and will be amortised over its lifespan.

It will be listed on the Nigerian Exchange and the FMDQ Securities Exchange, and will qualify under the Trustee Investment Act, making it eligible for investment by pension fund administrators, banks, asset managers, insurers and high-net-worth investors. '

https://punchng.com/fg-issues-n590bn-bond-to-settle-gencos-n4tn-debts/?utm_source=chatgpt.com

Not seen this reported elsewhere yet but this media agency is usually quick off the mark. Equates to about USD760M.

'The Federal Government has kicked off repayment of its ₦4tn power sector debt with a new ₦590bn bond issuance, ₦300bn in cash and ₦290bn in non-cash instruments for GenCos.

With a 7-year tenor and full sovereign guarantee, the bond marks a major step toward stabilising Nigeria’s electricity market after years of crippling liquidity challenges.'

https://www.facebook.com/photo?fbid=1304287521743205&set=a.644119261093371

Well the appointment process is expected ( your favourite Savannah word) to complete in Q4 2025 so they have approximately 2 months grace before Seplat usually publish their results, so sounds like a good bet to me.

What could possibly go wrong? ;-)

Hx, as I posted in October, once they appointed a committee I wrote off my bet as I've never known a committee to speed things up!

Noix, from Scotpak's post on this thread 'Also have not heard back from Sally on that December Coffee morning (I did email her again but no reply). '

Scotpak, yep, think that will most likely be it for any significant news till New Year. All the best to you and your family, and thanks for all the good info. you've provided thus far.

Scotpak, there are numerous articles all quoting the same figure. All the articles just report what the Minister of State for Petroleum Resources (Gas) said without any constructive critique. I agree with you, what the minister is claiming doesn't tally with the numbers we are aware of, so a little bit confusing for sure.

Also Accugas has a US$112 million partial risk gaurantee to backstop payments to Accugas for gas deliveries to the Calabar power plant, mitigating off-taker default risk from public sector entities.

Possibly valuseeker. They have a FGN bond issuance each month for various purposes. The last issue in November was for USD 391 million (Oct USD 150mn, Sep USD 360 mn) so it's possible some of this will be allocated for Genco debts but it 's well short of the debt amount of over 2.6bn USD and also well short of the 50% they were proposing. Personally I think they will have to issue a specific eurobond bond as per the previous one in November to get away the amount they need.

Noix, the recent bond issuance was pretty large ($2.6 bn) and was heavily oversubscribed ($13 bn) , which suggests they could get a similar figure away when/if they eventually try to.

Valueseeker, the completed bond issuance is not for the genco debts, it's for other infrastructure purposes and paying off previous bonds about to expire. The bond for the gencos has not been issued yet so it's back to waiting.