NBET's N501bn Bond to Revitalize Nigeria's Power Sector

The Nigerian Bulk Electricity Trading (NBET) has successfully issued a N501.02 billion bond, which is part of the Federal Government's broader N4 trillion Presidential Power Sector Debt Reduction Program (PPSDRP). This bond issuance represents the first phase of a multi-stage capital market intervention designed to restore liquidity and stabilize the electricity market, which has been burdened by N6 trillion in arrears as of December 2025.

The bond is structured in two tranches: N300 billion and N201.02 billion, both with a 7-year maturity and a 17.50% interest rate. The funds will be used to settle legacy debts owed to 14 generation companies (Gencos), with a total negotiated value of N827 billion.

The settlement agreement aims to strengthen payment certainty for gas suppliers and enable Gencos to stabilize their assets, thereby creating room for fresh investments. The initiative was highlighted during a ceremony in Lagos, attended by key officials including President Bola Ahmed Tinubu and Olu Verheijen.