Nigeria has taken a major step to resolve its power sector debt with the issuance of a ₦501 billion bond and the signing of settlement agreements with five electricity generation companies.
The bond, issued in Lagos on Tuesday, was fully subscribed by institutional investors, signalling renewed confidence in electricity market reforms.
The Presidential Power Sector Debt Reduction Programme aims to clear about ₦4 trillion in arrears owed to power generation companies for electricity supplied over the past decade.
Special Adviser to the President on Energy, Olu Verheijen, said the bond marks a reset of the electricity market, combining debt settlement with broader financial reforms.
Five generation companies have signed agreements with NBET, with a negotiated settlement value of ₦827.16 billion to be paid in phases.
Industry operators say clearing the debts will improve liquidity, restore confidence and unlock new investment across the power sector.
