The Federal Government has announced that its N501 billion inaugural tranche under the Presidential Power Sector Debt Reduction Programme has been fully subscribed by investors.

The development was disclosed on Tuesday by the Special Adviser to the President on Energy, Olu Verheijen. According to the statement, the bond issuance attracted participation from pension funds, banks, asset managers, and other institutional investors.

The programme is designed to address longstanding debts in the power sector, resolve legacy payment arrears owed to power generation companies, restore liquidity, and strengthen confidence in the Nigerian Electricity Supply Industry.

Speaking at the bond issuance signing ceremony in Lagos on 27 January 2026, Verheijen described the initiative as a “decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.”

The Series 1 Power Sector Bond, executed by NBET Finance Company Plc, closed at ₦501 billion. This comprised ₦300 billion raised from the capital market and ₦201 billion allotted directly to participating power generation companies.

The programme is expected to improve liquidity for power generation companies, unlock new investments, and support a more reliable electricity supply nationwide. Verheijen reaffirmed the Federal Government’s commitment to disciplined implementation, noting that the initiative forms part of broader reforms aimed at building a financially sustainable electricity market capable of supporting Nigeria’s long-term economic growth.

In his remarks, Adesina, a representative of the Generation Companies, highlighted that the clearing of historic arrears would allow construction to commence immediately on the second phase of the Egbin Power Plant. He thanked President Bola Tinubu for the resolution.

The Federal Government said the success of the bond subscription reflects investor confidence in the programme and its potential to transform Nigeria’s power sector.