By Onyeanya Ebere Immaculata
The Federal Government has launched a ₦590bn first-tranche bond under NBET Finance Company Plc’s ₦4tn bond programme to begin repaying debts owed to power generation companies (GenCos).
The Series 1 issuance, guaranteed by the government, is set for release between November and December 2025.
The tranche includes ₦300bn in cash bonds and ₦290bn in non-cash bonds allotted directly to GenCos.
It carries a seven-year tenor with a fixed-rate coupon, semi-annual interest, and an amortising repayment structure.
The bonds will be listed on the Nigerian Exchange and FMDQ Securities Exchange and qualify under the Trustee Investment Act, making them accessible to pension funds, banks, insurers, asset managers, and high-net-worth investors.
Proceeds will settle part of the ₦4tn debt accumulated due to under-remittance by electricity distribution companies, which has weakened gas supply contracts and contributed to recurrent grid collapses.
The government may absorb up to ₦1.23tn in oversubscription for additional GenCo allocations.
CardinalStone Partners Limited serves as lead issuing house and financial adviser.
The bond is backed by the full faith of the Federal Government, enjoys CBN liquidity status, and repayment will primarily come from the national budget, with NBET recoveries from DisCos as a secondary source.
