Abuja: Africa Finance Corporation (AFC), the continent's leading infrastructure solutions provider, has announced 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).According to African Press Organization, the issuance of ?501,000,000,000 marks a significant milestone in the implementation of the ?4 trillion Power Sector Bond Programme. This initiative is designed to resolve over a decade of legacy debt obligations within the Nigerian electricity supply industry. The Programme was managed by the Presidential Power Sector Debt Reduction Committee (PPSDRC), with technical leadership from the Office of the Special Adviser to the President on Energy and execution through Nigerian Bulk Electricity Trading Plc's special purpose vehicle, NBET Finance Company Plc. The bond proceeds will be used to settle verified, overdue receivables owed to Power Generation Companies ( GenCos) for electricity supplied between February 2015 and March 2025, eliminating legacy claims and injecting much-needed liquidity into the electricity industry.This transformative initiative by the Federal Government of Nigeria aims to restore financial stability, enhance liquidity, and strengthen the balance sheet of Nigerian GenCos by clearing outstanding arrears. By addressing these legacy obligations, the initiative is expected to boost both domestic and international investor confidence and attract fresh capital across the entire electricity sector value chain.The transaction received robust support from the pension fund investment community, with about 50% of the total financing secured from Pension Fund Administrators, successfully mobilizing domestic capital for critical electricity infrastructure in Nigeria. The successful issuance of the inaugural tranche under the Power Sector Bond Programme underscores AFC's commitment to supporting transformative reforms in Nigeria's power sector.AFC pro vided comprehensive financial advisory services to the Federal Government of Nigeria on this landmark transaction, including designing the Programme's negotiation strategy framework, assisting in negotiating and executing Settlement Agreements with GenCos, and structuring the bond issuance. Working alongside CardinalStone Partners as co-Financial Advisers, this transaction highlights AFC's deep and local market expertise in delivering complex, high-impact policy advice and financial solutions that catalyze sector-wide reforms.Olu Verheijen, Special Advisor to the President on Energy, commented that the Programme represents a decisive reset of Nigeria's electricity market, combining debt resolution with broader financial and structural reforms. AFC's strong sector expertise, deep local market knowledge, and clear understanding of the market's commercial complexities played a critical role in delivering a credible outcome that supports liquidity restoration, investor confidence, and long-term sustainability.B anji Fehintola, Executive Board Member and Head, Financial Services at Africa Finance Corporation, noted that the successful issuance of the inaugural tranche under the Power Sector Bond Programme 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.Once completed, the Programme will impact approximately 5,398MW of electricity generation capacity by Nigerian GenCos, effectively finalizing the 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 million active registered customers across the country.The Programme forms a fundamental aspect of the energy sector reforms by the Nigerian government, alongside sig nificant ongoing investments in consumer metering and transmission infrastructure, and a transition to bilateral electricity trading between wholesale counterparties based on market-reflective pricing. Together, these reforms are aimed at ensuring the evolution of a viable and sustainable electricity market in Nigeria to support long-term industrial growth and development.