The Africa Finance Corporation (AFC) has announced its critical role as Co-Financial Adviser on the successful close of the ₦728.9 billion Series 2 power sector bond transaction by NBET Finance Company Plc. This transaction is part of the Federal Government of Nigeria’s Presidential Power Sector Financial Reforms Programme (PPSFRP), designed to resolve over a decade of legacy debt obligations within the Nigerian electricity supply industry. The programme is a significant milestone in the implementation of the ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
The Series 2 close brings the cumulative issuance under the Programme to approximately ₦1.23 trillion, following the ₦501 billion inaugural Series 1 transaction completed in January 2026. AFC provided comprehensive financial advisory services to the Federal Government of Nigeria on the Series 2 transaction, including support in negotiating and executing Settlement Agreements with additional Power Generation Companies (GenCos). The transaction reflects AFC’s deep local market expertise and its continued commitment to delivering complex, high-impact policy advice and financial solutions that catalyse sector-wide reform.
Proceeds from the Series 2 issuance will continue to enable the process of settling verified, overdue receivables owed to GenCos for electricity supplied between February 2015 and March 2025. This will further extinguish legacy claims and inject liquidity into the electricity industry. The Presidential Power Sector Debt Reduction Committee (PPSDRC) oversees the Programme, with the Office of the Special Adviser to the President on Power providing technical leadership. The Nigerian Bulk Electricity Trading Plc (NBET) implements the programme through its special purpose vehicle, NBET Finance Company Plc.
The Series 2 transaction was oversubscribed, attracting strong demand from pension fund administrators, banks, sovereign wealth funds, and asset managers. This demonstrates the Federal Government’s commitment to honouring its obligations under the Programme and reinforces the credibility of the capital-markets approach to resolving legacy sector debt. The full and timely payment of the first coupon and principal instalment on the Series 1 Bonds in July 2026 also underscores the government’s commitment.
When completed, the Programme will impact approximately 5,398MW of electricity generation capacity by Nigerian GenCos. This will effectively finalise settlement of payments for 290,644.84GWhr of electricity billed since February 2015 and provide a strong foundation for new investments into capacity enhancement and expansion. The programme will benefit companies serving 12 million active registered customers across the country.
Banji Fehintola, Executive Board Member and Head, Financial Services at Africa Finance Corporation, expressed pride in supporting the Federal Government in delivering reforms that restore liquidity to the power sector. He noted that the second issuance within eight months of the inaugural series shows the Programme is working as designed. Verified legacy obligations are being converted into transparent, investable instruments, and domestic investors are backing that approach.
The Nigerian Presidential Power Sector Financial Reforms Programme forms a fundamental aspect of the energy sector reforms by the government. The programme, alongside significant ongoing investments in consumer metering and transmission infrastructure, and a transition to bilateral electricity trading between wholesale counterparties based on market-reflective pricing, aims to ensure the evolution of a viable and sustainable electricity market in Nigeria. This will support long-term industrial growth and development in the country.
Key points
- The Africa Finance Corporation supported the ₦728.9 billion Series 2 power sector bond transaction.
- The transaction is part of the Federal Government of Nigeria’s Presidential Power Sector Financial Reforms Programme.
- The programme will impact approximately 5,398MW of electricity generation capacity by Nigerian GenCos.
