Africa Finance Corporation (AFC) provided comprehensive financial advisory services to the Federal Government of Nigeria on the successful issuance of the inaugural tranche of bonds under the Presidential Power Sector Financial Reforms Programme (PPSFRP), marking a critical milestone in resolving over a decade of legacy debt in the electricity sector.
The ₦501 billion issuance, part of the ₦4 trillion Power Sector Bond Programme, will settle verified, overdue receivables owed to Power Generation Companies (GenCos) for electricity supplied between February 2015 and March 2025.
The initiative aims to restore financial stability, enhance liquidity, and boost investor confidence across Nigeria’s electricity industry.
AFC, in partnership with CardinalStone Partners as co-Financial Advisers, provided strategic support in negotiating settlement agreements with GenCos and structuring the bond issuance, leveraging deep sector expertise and local market knowledge.
Olu Verheijen, Special Advisor to the President on Energy, stated: “AFC played a critical role in delivering a credible outcome that supports liquidity restoration, investor confidence, and long-term sustainability.”
Banji Fehintola, AFC Executive Board Member, noted: “This transaction lays the foundation for sustainable growth and improved electricity supply, resolving long-standing liquidity challenges in the sector.”
The programme is expected to impact approximately 5,398MW of generation capacity, settling payments for 290,644.84GWh of electricity billed, and setting the stage for new investments in capacity expansion, ultimately benefiting 12 million registered customers across Nigeria.
*Distributed by APO Group on behalf of Africa Finance Corporation (AFC).
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Africa Finance Corporation (AFC) announces its role as Co-Financial Adviser on the successful issuance of the inaugural tranche of bonds under the Federal Government of Nigeria’s Presidential Power Sector Financial Reforms Programme (“PPSFRP” or the “Programme”)
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