The planned bond is part of the Presidential Power Sector Debt Reduction Programme (PPSDRP), a broader N4 trillion initiative designed to tackle longstanding financial obligations within the Nigerian Electricity Supply Industry (NESI).
The Nigerian Bulk Electricity Trading Plc (NBET) said the government will hold an investors’ forum on Tuesday, July 21, to engage potential investors ahead of the bond issuance.
The new offer followed the successful issuance of a N501 billion bond in January 2026.
Combined, the two instruments would raise approximately N1.23 trillion, representing the first phase of the government’s debt reduction strategy.
NBET disclosed that the first coupon and principal repayment on the January bond, which became due on July 14, was paid in full and on schedule, describing the move as a demonstration of the government’s commitment to meeting its financial obligations.
The organisation said the repayment has helped strengthen investor confidence and reinforced the credibility of the programme.
NBET Chief Executive Officer, Johnson Akinnawo, said the second bond issuance represents another step toward resolving verified power sector debts through a transparent and structured market-based approach.
He explained that improving liquidity across the electricity value chain would strengthen operators, encourage investment and support more sustainable power generation.
The Federal Executive Council approved the N4 trillion debt reduction programme in 2025, with NBET appointed to oversee the settlement of verified liabilities through debt instruments issued by NBET Finance Company Plc, a special purpose vehicle created for the initiative.
Akinnawo noted that the bonds are backed by the Federal Government’s full faith and credit, supported by measures designed to reduce risks and ensure successful implementation.
He said the programme is expected to create a more stable and investment-friendly electricity market by addressing financial challenges that have affected power sector growth for years.
The government believes that improving liquidity among sector players will help attract new investments, strengthen electricity generation and contribute to a more reliable power supply for Nigerians.
