By Danjuma Amodu | January 3, 2026
The Africa Finance Corporation (AFC) has announced its role as Co-Financial Adviser on the successful issuance of the inaugural tranche of bonds under Nigeria’s Presidential Power Sector Financial Reforms Programme (PPSFRP).
The ₦501 billion bond issuance is a significant step towards resolving over a decade of legacy debt obligations in the Nigerian electricity supply industry.
The bond proceeds will settle verified, overdue receivables owed to Power Generation Companies (GenCos) for electricity supplied between February 2015 and March 2025, injecting much-needed liquidity into the sector. This move is expected to restore financial stability, enhance liquidity, and strengthen the balance sheet of Nigerian GenCos, ultimately boosting investor confidence and attracting fresh capital.
Olu Verheijen, Special Advisor to the President on Energy, emphasized that the programme represents a decisive reset of Nigeria’s electricity market, combining debt resolution with broader financial and structural reforms.
“AFC brought strong sector expertise, deep local market knowledge, and a clear understanding of the market’s commercial complexities, playing a critical role in delivering a credible outcome that supports liquidity restoration, investor confidence and long-term sustainability.”
The programme has received strong support from the pension fund investment community, with about 50% of the total financing secured from Pension Fund Administrators.
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, noted that the successful issuance underscores AFC’s commitment to supporting transformative reforms in Nigeria’s power sector. “By resolving long-standing liquidity challenges and restoring confidence among investors and operators, this transaction lays the foundation for sustainable growth and improved electricity supply across the country.”
The programme is expected to impact approximately 5,398MW of electricity generation capacity and provide a strong foundation for new investments, ultimately benefiting 12 million active registered customers across the country. The Nigerian government aims to ensure a viable and sustainable electricity market, supporting long-term industrial growth and development through these reforms.
