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Fed. govt’s ₦501 billion power sector Bond records 100% subscription
• Stakeholders hail President Tinubu on initiative
• Programme to stimulate economy

The Federal Government has successfully issued a ₦501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), recording 100 per cent subscription from pension funds, banks, asset managers and other investors. It also marked a significant step towards resolving legacy debts, restoring liquidity and strengthening confidence in the Nigerian Electricity Supply Industry (NESI).

The initiative is designed to address long-standing payment arrears owed to power generation companies, which for over a decade constrained liquidity, weakened balance sheets and discouraged investment across the power sector value chain.

The signing follows the successful completion of Series 1 Power Sector Bond Issuance by Nigeria Bulk Electricity Trading (NBET) Finance Company Plc. Series 1 issuance closed at ₦501 billion, comprising ₦300 billion raised from the capital markets and ₦201 billion in bonds allotted to participating power generation companies, reflecting strong investor confidence in the reform agenda.

Under the Programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with power generation companies. To date, five power generation companies representing 14 power plants nationwide: First Independent Power Limited (FIPL); Geregu Power Plc; Ibom Power Company Limited; Mabon Limited and Niger Delta Power Holding Company Limited (NDPHC)- have executed Settlement Agreements with NBET. The total negotiated settlement amount for these companies stands at ₦827.16 billion, to be paid in four phased instalments.

Proceeds from Series 1 issuance will fund the first and second instalment payments to participating power generation companies with signed Settlement Agreements, estimated at ₦421.42 billion, representing approximately 50 per cent of the total negotiated settlement amount. The payment for this initial phase will be made through a mix of cash and notes.

When completed, the programme will impact 4,483.60MWh/h of electricity generation capacity by GenCos, effectively finalising settlement of payments for 290,644.84GWhr of electricity billed since February 2015 and providing a strong foundation for new investments into capacity enhancement and expansion by companies serving 12.03mn active registered customers across the country.

Speaking at the bond issuance signing ceremony which held at the Grand African Ballroom, Lagos Continental Hotel, Victoria Island, Lagos, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the ceremony marks a critical turning point in the collective efforts to address long-standing structural challenges in Nigeria’s power sector and to lay a stronger foundation for its long-term sustainability.

Edun, who was represented by the Director-General, Debt Management Office, Patience Oniha, explained that for many years, legacy debts owed to Generation Companies (GenCos) have constrained liquidity across the electricity value chain, weakening balance sheets, discouraged investment and ultimately limited the sector’s ability to deliver reliable power to Nigerian homes and businesses.

According to the Minister, the Federal Government recognised that resolving these legacy issues was not optional but essential, giving rise to the Presidential Power Sector Debt Reduction Programme (PPSDRP) and subsequently to the ₦4 trillion Power Sector Multi-Instrument Issuance Programme, designed as a structured, credible, and fiscally responsible mechanism for settling these obligations.

“This transaction sends a clear and reassuring signal to the power sector and to the wider economy that the Federal Government is committed to honouring its obligations. We are prepared to deploy innovative financial solutions to resolve systemic challenges and we remain focused on restoring liquidity, confidence, and discipline across the electricity market. By settling legacy debts in a structured manner, we are enabling Generation Companies to stabilise operations, improve maintenance and attract new investment- all of which are critical to improving power supply nationwide,” Edun said.

He disclosed that the programme is anchored on strong governance, transparency and fiscal prudence. The Ministry of Finance, working closely with NBET and other stakeholders, remains committed to ensuring that this initiative supports sector reform while safeguarding macroeconomic stability.

Edun was emphatic that a sustainable power sector is not just an energy objective, but an economic imperative because reliable electricity underpins industrial growth, job creation, and improved quality of life for millions of Nigerians.

In similar vein, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, stated that the programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.

She noted that the country’s electricity sector has been constrained not by lack of demand or installed capacity, but by unresolved legacy liabilities and chronic liquidity shortfalls. Those pressures, she argued, weakened balance sheets across the value chain, constrained gas supply, reduced plant availability and ultimately limited the pace at which electricity could be delivered reliably to homes and businesses.

Aware of this, Verheijen said the President Bola Tinubu administration conviction of having a viable power sector led to the establishment of the Presidential Power Sector Debt Reduction Programme, chaired by the Minister of Finance/Coordinating Minister of the Economy and technically led by her office.

“This Programme was not conceived as a bailout. It is a balance-sheet reset. Its purpose is straightforward: to clear verified legacy obligations, restore liquidity, and re-establish the conditions under which operators can plan, operate, and invest on commercial terms. Over the past several months, we have worked closely with the Ministry of Finance, NBET, NERC, and power generation companies to reconcile claims and negotiate settlements based strictly on verified obligations. Today’s signing marks the outcome of that process.

“Fourteen generation companies have executed Full and Final Settlement Agreements, with a total negotiated value of approximately ₦827 billion. These agreements reflect discipline, compromise, and a shared commitment to closing the chapter on legacy arrears,” Verheijen said.

Therefore, she said, resolving these liabilities restores liquidity across the value chain, strengthens payment certainty for gas suppliers and creates the financial headroom required for operators to stabilise assets, improve availability and plan new investment.

Also speaking at the signing ceremony, the NBET Managing Director, Johnson Akinnawo, described the programme as a historic and defining moment for Nigeria’s power sector.

“This historic programme received the resolute approval of President Bola Tinubu and the Federal Executive Council. Mr. President’s decisive endorsement is not just a procedural step; it is the bedrock of this ambition. It signals the highest level of commitment to the total revitalisation of our nation’s power sector,” Akinnawo said, adding that the development would strengthen market disciplines while enabling growth across generation and the other segments of the electricity value chain.

Akinnawo stressed the broader significance of reliable electricity for national development, saying, “Reliable electricity is not just an enabler of economic activity. It is the backbone of national development, social advancement and global competitiveness.”

The Group Managing Director, Sahara Power Group, Kola Adesina, who’s conglomerate owns five power plants, said: “Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made. Because we were being owed so much, it was a bit of a problem for us to put in more money. But last year we took the bull by the horns, based on President Bola Ahmed Tinubu’s commitment in resolving the legacy issues and I can say that once this process is over, construction will commence immediately on the second phase of our Egbin Power Plant. On behalf of the Generation Companies, I’d like to thank the President for this resolution.”

By clearing historic arrears, the programme is expected to improve liquidity for power generation companies, strengthen their ability to meet operating and debt obligations, unlock new investment across the sector and support more reliable electricity supply to homes and businesses. It also reinforces fiscal discipline through validated claims, negotiated settlements and transparent capital market financing.
CardinalStone Partners Limited, an Investment banking firm, led the consortium of appointed professional parties as Lead Financial Adviser and Lead Issuing House to successfully execute the Series 1 Bond Issue, working closely with NBET that acted as Sponsor on the Transaction, and the Office of the Special Adviser on Energy that led the settlement negotiations and engagements with the Generation Companies.

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Ikeja Electric, LECAN trains 100 young electricians

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As part of its continuous investment in human capital development, Ikeja Electric Plc (IE), in collaboration with the Licensed Electrical Contractors Association of Nigeria (LECAN), has concluded a one-day intensive skills acquisition and capacity-building programme with the theme: “Electrical Safety and Best Practices in the Electricity industry.”

Over 100 participants comprising field technicians and electrical professionals participated in the workshop which focused on practical and engaging sessions bordering on safety procedures, alternative power integration and electrical installation standards.

Speaking at the event, the State Chairman of LECAN, Bada Waheed, commended Ikeja Electric for its continued support of capacity development within the electricity industry.

“This initiative is a testament to what can be achieved when industry leaders and professional bodies collaborate for sustainable growth. Our young electricians represent the future of Nigeria’s energy value chain, and programmes like this ensure they are skilled, informed, and safety-conscious. We deeply appreciate this gesture from Ikeja Electric and hope to have future collaborations to impact our youth and make them more productive. Noteworthy is the fact that this programme aligns with our goal of nurturing local talents and bridging the gap between learning and practical application,” he said.

The Head of Corporate Communications, Ikeja Electric, Kingsley Okotie, highlighted the importance of corporate partnerships in driving community empowerment, beyond the provision of electricity.

“Over time we have discovered a lot of gaps in efficiency and knowledge acquisition especially by technicians, who are major stakeholders within our sector. This fueled our drive to strengthen their capacity in the area of safety, alignment in the integration of renewable energy as well as other industry innovations. We know that electricity is a powerful tool that demands responsibility and precision. Therefore, this training is reinforcing our zero-harm culture by empowering participants with the right knowledge to execute their work safely and efficiently.

The collaboration with LECAN reflects our vision to build safer communities through education and empowerment; closing knowledge gaps, reducing accidents within our area of coverage and preventing unnecessary loss of lives and property, thereby making the society a better place for all’’ he concluded.

One of the beneficiaries, Makinde Adeyinka, expressed gratitude for the opportunity, describing the experience as “eye-opening and impactful.”

“I have learned so much about safety standards, proper installations, and building a sustainable career as an electrician. I am thankful to Ikeja Electric and LECAN for investing in young electricians like me and look forward to more programmes like this,” he said.

The one-day training is part of Ikeja Electric’s ongoing youth empowerment and safety awareness initiatives, reinforcing its commitment to workplace safety, operational excellence, and continuous professional development.

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Electricity subsidy dips to N514.35b in Q2 2025

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• DisCos collect ₦564.71 billion revenue; International customers pay $9.01m

The Nigerian Electricity Regulatory Commission (NERC) has said the cost of Federal Government electricity subsidy reduced to N514.35 billion in the second quarter of 2025 (Q2 2025) from the N536.40 paid in the Q1 2025. The decline was by 4.11 per cent, according to the commission’s Q3 Report.
The payment of subsidy, the report noted, was incurred due to lack of a cost-reflective tariff.
NERC said, “The total amount invoiced by the GenCos for energy delivered to each DisCo and the DRO- adjusted NBET invoice to the respective DisCos during 2025/Q2.
“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the Government incurred a subsidy obligation of ₦514.35 billion 21; this represents a ₦22.04 billion (-4.11 per cent) reduction in FGN subsidy compared to 2025/Q1 (₦536.40 billion).”
The report also noted that although the subsidy obligation of the government decreased in naira terms (-₦22.04 billion), it accounted for 59.60 per cent of the total GenCo invoice, which is a
0.44pp increase compared to 2025/Q1 when subsidy accounted for 59.16 per cent of the total GenCo invoice.
NERC said this is because the actual generation cost (₦/kWh) increased by 0.59 per cent, while the allowed end-user tariffs remained unchanged across the quarters.
According to the report, the total revenue collected by all DisCos in 2025/Q2 was ₦564.71 billion out of the ₦742.34 billion that was billed to customers.
This, said NERC, translates to a collection efficiency of 76.07 per cent.
In comparison, the report said, the total revenue collected by all DisCos in 2025/Q1 was ₦553.63 billion out of the ₦744.26 billion billed to customers, which translated to a 74.39 per cent collection efficiency.
This means that at an aggregate level, DisCos recorded a 1.68pp increase in collection efficiency between 2025/Q1 and 2025/Q2, according to the report.
NERC revealed that in 2025/Q2, three DisCos recorded collection efficiencies greater than 80 per cent with Eko (87.80 per cent) recording the highest collection efficiency.
Conversely, it said Jos DisCo recorded the lowest collection efficiency at 43.82 per cent .
It added that on there other hand, the remaining five DisCos recorded declines in collection efficiency, with Abuja (-3.93pp) and Jos (-3.37pp) DisCos having the most significant declines
across the quarters.
NERC explained that the Market Operator issues invoices to DisCos for energy transmission and administrative services.
The report said the period under review, DisCos made a total remittance of ₦65.30 billion against the cumulative invoice of ₦68.68 billion issued by the MO.
This payment, according to the report, translates to 95.07 per cent remittance performance and is a 1.25pp decrease
when compared to 96.32 per cent remittance performance recorded in 2025/Q1 when DisCos remitted ₦59.49 billion out of ₦61.76 billion invoice issued by the MO.
On the remittances made by bilateral customers (domestic and international) and special customers for invoices issued in 2025/Q2 by the MO, NERC noted they are the six international bilateral customers being supplied by GenCos in the NESI made a payment of $9.01 million against the cumulative invoice of $17.54 million issued by the MO for services rendered in 2025/Q2, translating to a remittance performance of 51.33 per cent .
It also said the domestic bilateral customers made a cumulative payment of ₦1.401.00 billion against the invoice of ₦2.796.29 billion issued to them by the MO for services rendered in 2025/Q2, translating to 50.10 per cent remittance performance.
The report explained that one domestic bilateral customer made payments during 2025/Q2 for outstanding MO invoices from previous quarters.
NERC said the MO received ₦10.53 million from Trans-Amadi (OAU/FMPI) towards outstanding invoices from previous quarters.
Meanwhile, it said the special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ₦1.27 billion (NBET) and ₦0.12 billion (MO) invoices received in 2025/Q2.
It explained that this continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant FGN authorities.

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EKEDC transmutes into a Holding Company, registers Excel DisCo

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The Eko Electricity Distribution Company Plc (Eko DisCo) has officially registered Excel Electricity Distribution Company Limited as a 100 per cent subsidiary to take over the operations of its electricity distribution business in Lagos State. This is in compliance with Lagos State Government regulatory requirements.
Following the granting of electricity regulatory powers to the states, the Lagos State Electricity Regulatory Commission (LASERC) required Eko DisCo, which operates in two states- Lagos and Ogun States, to register a separate entity for its Lagos State operations. Eko DisCo therefore registered its subsidiary, Excel Electricity Distribution Limited to operate its distribution business under the regulatory oversight of LASERC and Nigeria Electricity Regulatory Commission (NERC).
The EKEDC has subsequently transmuted into a holding company- a structural change in regulatory compliance following the enactment of the Electricity Act (EA) 2023 which devolved regulatory oversight of the electricity market to state governments.
In a statement signed by the EKEDC management yesterday, the utility assured that the development will not impair its operations in the State.
“Management hereby reiterates that Eko Electricity Distribution Company Plc remains a key player and investor in the Lagos electricity ecosystem, committed to delivering reliable, efficient, and sustainable power supply to all customers through Excel Disco. The recent licensing developments represent a regulatory and structural transition, not a takeover or divestment. This clarification became necessary in the interest of factual accuracy and public understanding of important developments in the electricity sector,” the statement said.
It further explained that the newly licensed Excel Electricity Distribution Limited is a 100 per cent subsidiary of EKEDC and will perform all the electricity distribution activities previously done by EKEDC under EKO DISCO. Furthermore, the EKEDC advised all customers of Excel DisCo will continue to be served by the same personnel who served them in EKO DISCO and urged them to pay their bills in the same way they have been paying.
“They will notice the name change as we transition the name from EKODISCO to Excel Disco. For now, they should continue to contact the same personnel they normally contact for all their service needs and customer requests,” it advised its customers.
The management was emphatic that the new arrangement does not translate to the sale or takeover of EKEDC, as it remains a legally recognised and operational entity duly incorporated under Nigerian law.
There has been no sale, transfer of ownership, or dissolution of the company. EKEDC also known as Eko DisCo continues to exist as a legal entity, with 60 per cent shareholding retained by West Power and Gas Limited (WPG) — the core investor and the BPE which is holding the balance 40 per cent shareholding on behalf of the Federal government of Nigeria. The company continues to operate under full compliance with good corporate governance and regulatory frameworks,” the management said.

 

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