NBET Finance Company PLC has secured the listing of ₦728.98 billion worth of Series 2 fixed-rate bonds on FMDQ Securities Exchange, marking a significant development in efforts to address financial challenges in Nigeria’s electricity sector.
The bonds comprise a ₦402 billion seven-year Series 2 Tranche A and a ₦326.98 billion seven-year Series 2 Tranche B. They were issued under the company’s ₦4 trillion Multi-Instrument Issuance Programme.
The listing is expected to support the financing of outstanding obligations within the power sector, particularly legacy debts owed to electricity generation companies (GenCos).
The transaction also highlights the role of Nigeria’s debt capital market in mobilising long-term funds for infrastructure development and supporting sectors that require substantial investment.
FMDQ Exchange said the listing was approved by its Board Listings and Markets Committee, with CardinalStone Partners Limited acting as the sponsoring Registration Member (Listings).
The development builds on the Series 1 issuance and represents another phase in the Federal Government’s efforts to improve liquidity and strengthen the financial sustainability of the electricity market.
Bond Proceeds to Address Legacy Electricity Debts
Managing Director of NBET, Akinola Odeyemi, said the proceeds would help settle outstanding legacy debts owed to GenCos, improve liquidity across the electricity value chain and support more reliable electricity supply.
He described the listing as another important step in efforts to restore financial stability to the power sector.
Nigeria’s electricity industry has struggled with longstanding payment obligations, which have affected the ability of generation companies to meet operational expenses, maintain facilities and pay their gas suppliers.
When payments are delayed, power producers may find it difficult to secure the resources needed to sustain electricity generation. This can affect the entire electricity value chain, from generation to distribution.
The bond programme is therefore designed to address some of these financial challenges by providing a structured mechanism for settling verified outstanding obligations.
According to previous reports, the Series 2 issuance comprises ₦402 billion in cash bonds and approximately ₦326.98 billion in non-cash bonds allocated to participating generation companies. The distinction is important because the entire ₦728.98 billion is not a fresh cash injection into the sector.
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Seven-Year Bonds Strengthen Capital Market Financing
The two bonds have a seven-year tenor and form part of NBET Finance Company’s broader ₦4 trillion Multi-Instrument Issuance Programme.
The transaction demonstrates how Nigeria’s domestic debt capital market can be used to mobilise long-term financing for strategic sectors that require substantial investment.
By listing the bonds on FMDQ Exchange, investors have access to a recognised platform for trading the securities in the secondary market. This can support price discovery and provide greater flexibility for investors seeking to buy or sell the instruments.
The Series 2 bonds were also listed on the Nigerian Exchange, according to CardinalStone Partners, which acted as lead financial adviser and lead issuing house for the transaction.
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The successful listing follows the earlier Series 1 issuance, which raised approximately ₦501.02 billion through two seven-year bonds listed on FMDQ Exchange in May 2026.
The Series 1 transaction comprised a ₦300 billion Tranche A bond and a ₦201.02 billion Tranche B bond, demonstrating the use of capital market instruments to support the Federal Government’s power sector financing programme.
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CardinalStone and FMDQ Highlight Infrastructure Financing
Group Managing Director of CardinalStone Partners, Michael Nzewi, described the Series 2 listing as another major achievement for the firm and the Nigerian capital market.
He said the transaction demonstrated the importance of expertise, collaboration and disciplined execution in delivering large-scale financing solutions.
Nzewi added that capital markets could play a transformative role in mobilising long-term funds for infrastructure development and sustainable economic growth.
He reaffirmed CardinalStone’s commitment to developing innovative financing solutions and unlocking capital for strategic sectors.
Similarly, Group Chief Operating Officer of FMDQ Group, Tumi Sekoni, said the listing demonstrated the ability of Nigeria’s debt capital market to mobilise long-term financing for critical infrastructure.
She noted that FMDQ Exchange remained committed to providing an efficient marketplace that supports capital mobilisation, strengthens investor confidence and advances the development of the country’s financial markets.
What the Bond Listing Means for Electricity Consumers
The expected impact of the bond programme goes beyond the financial market.
Improved liquidity for generation companies could help them meet operational expenses, maintain power plants and settle outstanding obligations to gas suppliers.
A financially stronger generation segment is important because electricity production depends on the ability of power plants to operate consistently and obtain the fuel and maintenance services required for generation.
However, the bond listing alone cannot resolve all the structural challenges facing Nigeria’s electricity industry.
Sustainable improvements will also depend on stronger payment collection across the electricity market, adequate gas supply, reliable transmission infrastructure and effective distribution networks.
The sector must also address the financial gaps that have contributed to the accumulation of unpaid obligations over the years.
The Series 2 listing therefore represents an important financing step, but its long-term success will depend on how effectively the funds support the settlement framework and wider power sector reforms.
Outlook for Nigeria’s Power Sector
The ₦728.98 billion Series 2 bond listing reinforces the role of Nigeria’s capital market in supporting government-backed infrastructure financing.
For NBET, the transaction provides another avenue to address historical payment obligations and strengthen the financial relationship between electricity generation companies and other market participants.
For investors, it adds another large-scale fixed-rate instrument to the domestic debt market.
For the electricity sector, the central expectation is that improved liquidity will help restore confidence, support operations and encourage further investment.
Nevertheless, achieving a more reliable electricity supply will require continued reforms and financial discipline across the entire value chain.
The latest transaction marks another milestone in the Federal Government’s efforts to address longstanding power sector debts and create a stronger foundation for sustainable electricity market development.
