Africa Finance Corporation (AFC) acted as co‑financial adviser on the successful close of the ₦728.9 billion Series 2 power sector bond issued by NBET Finance Company Plc under Nigeria’s Presidential Power Sector Financial Reforms Programme.

The issuance follows a ₦501 billion Series 1 transaction completed in January 2026, also advised by AFC, bringing total programme issuance to roughly ₦1.23 trillion.

The programme, overseen by the Presidential Power Sector Debt Reduction Committee and implemented through NBET’s special‑purpose vehicle, aims to clear over a decade of legacy debt in the electricity supply industry.

How the bond supports power‑sector reforms

Proceeds from Series 2 will be used to settle verified, overdue receivables owed to power generation companies for electricity supplied between February 2015 and March 2025, further extinguishing legacy claims and injecting liquidity into the sector.

AFC’s advisory work included negotiating settlement agreements with additional generation companies, structuring cash and non‑cash tranches, and engaging investors ahead of the offer.

The bond was oversubscribed, attracting strong demand from pension fund administrators, banks, sovereign wealth funds and asset managers, mobilising domestic long‑term capital for critical electricity infrastructure.

Expected benefits for Nigeria’s electricity system

When fully implemented, the reforms are projected to affect about 5,398 MW of generation capacity, settling payments for roughly 290,644.84 GWh of electricity billed since February 2015 and supporting new investment for capacity expansion serving 12 million registered customers.

NBET’s managing director noted that converting verified receivables into liquid assets will enable generators to pay gas suppliers, maintain plants and fund new capacity.

Future steps in the reform programme

The Series 2 close follows the timely payment of the first coupon and principal instalment on the Series 1 bonds in July 2026, reinforcing the government’s commitment to honour programme obligations and sustain confidence in the capital‑markets approach.

AFC reiterated its support for the Federal Government in restoring liquidity and laying a foundation for further investment in Nigeria’s generation capacity as the broader presidential reforms continue.