Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa, has announced its role as Co-Financial Adviser on the close of a ₦728.9 billion ($550 million) Series 2 power sector bond issued by NBET Finance Company  under Nigeria’s Presidential Power Sector Financial Reforms Programme (PPSFRP).

The transaction follows the ₦501 billion Series 1 issuance completed in January 2026, bringing total funds raised under the programme to approximately ₦1.23 trillion.

The issuances form part of the government’s broader ₦4 trillion Power Sector Multi-Instrument Issuance Programme, which aims to address more than a decade of legacy debt in Nigeria’s electricity supply industry.

The programme is overseen by the Presidential Power Sector Debt Reduction Committee, with technical leadership from the Office of the Special Adviser to the President on Power.

Implementation is being carried out through NBET’s special purpose vehicle, NBET Finance Company.

Proceeds from the Series 2 bond will support the settlement of verified overdue receivables owed to electricity generation companies (GenCos) for power supplied between February 2015 and March 2025.

The initiative is intended to reduce outstanding claims and inject liquidity across the electricity value chain.

Building on its role in the first issuance, AFC provided financial advisory support to the Federal Government, including assistance with settlement agreements involving additional GenCos, structuring the cash and non-cash components of the Series 2 transaction and engaging investors ahead of the offer.

AFC worked alongside CardinalStone Partners as Co-Financial Adviser.

Banji Fehintola, Executive Board Member and Head, Financial Services at Africa Finance Corporation, said, “Closing 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. AFC is proud to continue supporting the Federal Government in delivering reforms that restore liquidity to the power sector and lay the foundation for new investment into Nigeria’s generation capacity.”

The Series 2 issuance follows the full and timely payment of the first coupon and principal instalment on the Series 1 bonds in July 2026.

The development is intended to reinforce investor confidence in the government’s approach to resolving legacy electricity-sector debt.

The Series 2 offering was oversubscribed, attracting demand from pension fund administrators, banks, sovereign wealth funds and asset managers.

The participation is expected to help mobilise domestic long-term capital for Nigeria’s electricity infrastructure.

Once fully implemented, the programme is expected to address obligations linked to approximately 5,398MW of generation capacity.

It will settle payments associated with 290,644.84GWhr of electricity billed since February 2015 and potentially provide a stronger financial foundation for generation companies to invest in capacity expansion.

The companies involved serve approximately 12 million active registered electricity customers nationwide.

Akin Odeyemi, Managing Director/Chief Executive Officer, Nigerian Bulk Electricity Trading (NBET), said: “For too long, verified receivables have sat on GenCos’ balance sheets, limiting their ability to pay gas suppliers, maintain plants and invest in new capacity. With Series 2, we are turning more of those arrears into liquidity across the electricity value chain. We thank our investors, the participating GenCos, our advisers and the regulatory authorities whose support made this issuance possible.”

The debt-reduction programme forms part of wider Nigerian energy-sector reforms, alongside investments in consumer metering and transmission infrastructure and the transition toward bilateral electricity trading based on market-reflective pricing.

Together, the measures are aimed at developing a more financially sustainable electricity market capable of supporting Nigeria’s long-term industrial and economic growth. -OGN/TradeArabia News Service