The Federal Government has officially flagged off a N4trillion naira bond as part of the Presidential Power Sector Debt Reduction Programme, a comprehensive financial intervention aimed at liquidating outstanding obligations and restoring investor confidence in the Nigeria Electricity Supply Industry (NESI).
The strategic initiative was unveiled during a high-level virtual investor forum convened jointly by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy.
Leading the presentation were the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun; the Minister of Power, Chief Adebayo Adelabu; and the Special Adviser to the President on Energy, Ms. Olu Verheijen.
The event attracted significant interest from the financial community, with over 600 participants in attendance, including key decision-makers from commercial banks, pension fund administrators, insurance firms, issuing houses, asset managers, and family offices.
The programme centers on a new bond issuance designed to clear the backlog of debts owed to Generation Companies (GenCos) and gas suppliers, a critical bottleneck that has historically hampered power generation and distribution.
According to the Office of the Special Adviser on Energy, this bond issuance is expected to provide immediate cash flow to GenCos, allowing them to settle obligations to gas suppliers and maintain equipment.
The move is also designed to rebuild confidence by signaling the government’s commitment to contractual sanctity, thereby encouraging future investment and creating a more financially viable value chain that supports consistent power delivery to the national grid.
The government emphasized that the debt reduction programme is the culmination of months of rigorous collaboration between the Ministries, the Nigerian Bulk Electricity Trading (NBET), the Nigerian Electricity Regulatory Commission (NERC), and the GenCos.
They noted that it is not merely a payout but a structured settlement based on audited claims, ensuring that all settled debts have been subjected to strict verification processes for transparency and value for money.
With the public introduction of this bond, the Federal Government aims to turn the page on the sector’s liquidity crisis and set the stage for a sustainable electricity market.