Nigeria Appoints Africa Finance for N501bn Power Sector Bond Issuance

The Nigerian government has appointed Africa Finance Corporation (AFC) as the financial advisor for the issuance of a N501 billion power sector bond. This bond is part of the Presidential Power Sector Reform Program (PPSRP) aimed at resolving the longstanding debt issues in Nigeria's electricity industry.

The bond issuance is the first tranche of a broader N4 trillion power sector bond program designed to clear arrears owed by electricity generation companies (GENCOs) and restore financial stability in the sector. The funds from the bond will settle verified overdue receivables owed by GENCOs and electricity suppliers from February 2015 to March 2025.

The AFC will provide comprehensive financial advisory services to the federal government for this landmark transaction, ensuring transparency and credibility to attract investors. Olu Verheijen, a special advisor to the President on energy, leads the implementation of the program, which includes the establishment of the Nigerian Bulk Electricity Trading Plc (NBET).

Banji Fehintola, an executive board member of AFC, highlights the confidence in Nigeria's reform agenda and commitment to supporting infrastructure projects across the continent.