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FG begins N4tn GenCos debt repayment with bonds

Published

5 months ago

December 10, 2025

The Federal Government has begun the process of repaying the N4tn debt owed to Power Generation Companies with the launch of a N590bn first-tranche bond issuance.

The initial tranche, part of a wider N4tn NBET Finance Company Plc Bond Programme, is guaranteed by the Federal Government. It comprises N300bn in cash bonds to be issued to the market and N290bn in non-cash bonds to be directly allotted to GenCos on identical terms.

The PUNCH learnt that details contained in the bond term sheet obtained by our correspondent on Tuesday revealed that the Series 1 bond will be issued between November and December 2025. CardinalStone Partners Limited is serving as the lead issuing house and financial adviser.

According to the term sheet, “Series 1 Tranche A involves N300bn issued to the market for cash, while N290bn under Tranche B is allotted to the GenCos on identical terms. The bond will be issued between November and December, with a seven-year tenor on a fixed-rate coupon, redeemed on an amortising basis and paid semi-annually in arrears.”

The bond issuance marks a major step by President Bola Tinubu’s administration to resolve what experts describe as one of the most crippling financial crises in Nigeria’s power sector. The Series 1 bond carries a seven-year tenor, a fixed coupon rate, and semi-annual interest payments, and will be amortised over its lifespan.

It will be listed on the Nigerian Exchange and the FMDQ Securities Exchange, and will qualify under the Trustee Investment Act, making it eligible for investment by pension fund administrators, banks, asset managers, insurers and high-net-worth investors.

The issuer also retains the discretion to absorb oversubscription of up to N1.23tn, creating room for additional non-cash bond allocations to GenCos if required.

The term sheet added, “Pricing will be based on the yield of the seven-year FGN bond plus a spread, and the issuance will be conducted through a book-build process. The minimum subscription is N5m, representing 5,000 units at N1,000 each, with additional subscriptions in multiples of N1,000.

“Proceeds from the issuance will be used to settle outstanding liabilities owed to GenCos. The instrument is guaranteed by the full faith and credit of the Federal Government, enjoys CBN liquidity status, meets PenCom compliance requirements, qualifies under the Trustee Investment Act, and will be listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.”

It further noted that “oversubscription may be absorbed at the discretion of the issuer up to a maximum of N1,230,000,000,000 approved for Phase 1 of this transaction. The issuer reserves the right to increase the size of the non-cash bonds to be issued to the GenCos under any Series or accommodate additional allotments as may be required.”

Nigeria’s power sector has been weighed down for years by NBET’s inability to settle GenCos’ invoices due to chronic under-remittance by electricity distribution companies (DisCos).

GenCos have repeatedly complained that mounting debts, currently estimated at N4tn and projected to reach N6tn by year-end, have crippled their operations, weakened gas supply contracts, and forced several power plants to run far below capacity.

This liquidity shortfall has contributed significantly to recurrent grid collapses, poor generation output, and unstable electricity supply nationwide. The bond is fully guaranteed by the Federal Government, enjoys Central Bank liquidity status, and meets PenCom requirements for pension fund investments.

Repayment will be funded primarily through the national budget, with NBET’s recoveries from DisCos serving as a secondary source. CardinalStone Partners Limited, the lead issuing house and financial adviser for the forthcoming Federal Government-backed Electricity Bond, has invited institutional investors to an investor forum ahead of the planned.

In a mail notice to investors, the firm said the seven-year bond, with a coupon range of 16.25 per cent to 16.75 per cent, is designed to support ongoing electricity market reforms, with proceeds directed toward strengthening the power sector.

The instrument carries a full sovereign guarantee and will be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange.

The mail read, “Dear Valued Investor, Trust this email finds you well. In Furtherance of the upcoming FGN-backed Electricity Bond, which is scheduled to open soon, with a tenor of 7 years and a coupon range of 16.25 per cent–16.75 per cent. The bond programme is structured to deliver direct impact to the power sector, with proceeds applied towards strengthening electricity market reforms.

“It also carries a full sovereign guarantee, providing comfort comparable to traditional FGN bonds. The bond notes will be listed on both the NGX and FMDQ and will benefit from the PenCom waiver. While recognition by the CBN for repo and collateral purposes is yet to be obtained, feedback on this will be available shortly.”

The firm added that the bond would also benefit from the National Pension Commission waiver, although approval from the Central Bank of Nigeria for repo and collateral eligibility was still being processed.

CardinalStone noted that the Presidential Power Sector Debt Reduction Committee, chaired by the Minister of Finance and Coordinating Minister of the Economy, would lead the engagement with investors at a virtual forum scheduled for Wednesday, December 10, 2025.

The session is expected to bring together banks, pension fund administrators, asset managers, insurance firms, and other major stakeholders to provide clarity on power sector reforms and encourage market participation in the N1.23tn bond issuance under the Power Sector Multi-Instrument Issuance Programme.

Registration for the event, which will be held via Zoom, is compulsory, the notice added.

“Based on the above, the Presidential Power Sector Debt Reduction Committee, under the distinguished leadership of the Honourable Minister of Finance and Coordinating Minister of the Economy, in collaboration with our firm we are pleased to invite you to the Investor Forum for the N1.23tn Power Sector Bond Issuance (“the Issue”) under the Power Sector Multi-Instrument Issuance Programme (“the Programme”).

“The forum will convene key institutional investors in the Nigerian Capital Market, including Banks, Pension Fund Administrators, Asset Managers, Insurance Companies, and other power sector stakeholders.

“Our goal is to provide clarity on ongoing power sector reforms, outline the planned bond issuance, and foster strong market participation. You are invited to join this engagement as a critical stakeholder in shaping the future of the Power sector in Nigeria,” the notice concluded.

An official familiar with the development, who spoke on condition of anonymity due to lack of authorisation to speak on the matter, said the power generation companies had been invited to a meeting scheduled for Wednesday, likely to discuss details of the planned electricity bond. The source added that the bond issuance had so far raised “more questions than answers” among sector stakeholders.

“Gencos have been invited for a meeting tomorrow. The meeting will most likely be to discuss the details of the bond. The bond issuance actually raises more questions than answers,” the official said.

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News

Navy deploys ships, helicopters against maritime crimes

Published

17 hours ago

April 27, 2026

Newsbreak365_Admin

The Nigerian Navy has deployed 10 ships, two helicopters, and other assets in a special operation to stamp out maritime crimes, including piracy, sea robbery, and illegal trafficking within the Gulf of Guinea.

The Navy said the assets will engage in anti-illegal trafficking of arms and drugs, anti-crude oil theft operations, anti-illegal, unregulated and unreported fishing, and search and seizure procedures, among others.

The Chief of Naval Staff, Vice Admiral Idi Abbas, disclosed this while flagging off the operation codenamed ‘Exercise Obangame Express 2026’ aboard the Nigerian Navy Ship KADA in Onne, Rivers State, on Sunday.

Abbas, who was represented by the Chief of Naval Operations, Naval Headquarters, Rear Admiral P.E. Effah, said the exercise was initiated in 2010 by the United States Navy in collaboration with the navies of the Gulf of Guinea nations.

He said the annual exercise had served as a strategic platform for advancing coordinated maritime security operations in the region over the years.

The CNS stated, “It remains a critical instrument for fostering unity of effort, enhancing interoperability, and consolidating our shared resolve to secure our maritime domain against emerging and evolving threats.

“The core objectives of the exercise are clear and enduring. They include strengthening regional maritime security cooperation, enhancing information sharing and maritime domain awareness, and improving tactical and operational readiness.

“It also includes building the capacity of participating navies to effectively counter both national and transnational maritime crimes, including piracy, sea robbery, illegal trafficking, and other illicit activities at sea. The importance of this exercise cannot be overstated.”

Abbas further said the exercise had significantly contributed to improving diplomatic relations and strengthening naval partnerships across the region and beyond, thereby reinforcing the collective security architecture within the Gulf of Guinea.

“For this year’s exercise, the Nigerian Navy will deploy 10 ships, two helicopters, maritime domain awareness assets, and elements of the Special Boat Service.

“These assets will be engaged in a series of carefully designed scenarios, including anti-illegal trafficking of arms and drugs, anti-crude oil theft operations, anti-illegal, unregulated and unreported fishing, visit, board, search and seizure procedures, as well as search and rescue exercises and simulation of hot pursuit.

“These activities are deliberately structured to sharpen our operational competence, test our readiness, and refine our collective response mechanisms to real-world maritime threats. The success of an exercise of this magnitude is underpinned by meticulous planning, robust logistics, and unwavering commitment.”

He thanked President Bola Tinubu for his support of the Armed Forces and lauded officers and personnel for their professionalism and dedication.

Abbas added, “Through sustained collaboration, we will not only consolidate the gains already achieved but also build a more secure, stable, and prosperous maritime domain for our nations.”

Earlier, the Flag Officer Commanding Eastern Naval Command, Rear Admiral C.D. Okehie, said the exercise is a major multinational maritime security operation conducted across West and Central Africa under the sponsorship of the United States Africa Command.

He noted that the Gulf of Guinea remains a vital global sea lane but is vulnerable to evolving maritime threats.

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News

Iran foreign minister arrives in Russia as US talks remain stalled

Published

17 hours ago

April 27, 2026

Newsbreak365_Admin

Iran’s foreign minister arrived in Russia on Monday as peace efforts between Tehran and Washington hung in the balance, following a flurry of regional diplomacy and the collapse of planned talks in Pakistan.

Abbas Araghchi arrived in Saint Petersburg, the Iranian Foreign Ministry said on Telegram, where he is expected to meet with Russian President Vladimir Putin.

It comes after Araghchi visited Oman between trips to Pakistani capital, Islamabad, as mediators push to keep peace talks between Tehran and Washington alive.

On Saturday, US President Donald Trump scrapped a planned trip to Islamabad by his envoys Steve Witkoff and Jared Kushner.

In a sign that efforts were ongoing, the Fars news agency said Iran had sent “written messages” to the Americans via mediator Pakistan outlining red lines, including nuclear issues and the Strait of Hormuz.

Fars said the messages were not part of formal negotiations, however.

US media outlet Axios reported on Sunday that Iran had sent a new proposal to reopen the Strait of Hormuz and end the war, with nuclear negotiations postponed for a later stage, citing a US official and two other sources with knowledge of the matter.

Iranian state news agency IRNA cited the report without denying it.

A ceasefire in the US-Israeli war with Iran has so far held, but its economic shockwaves have continued to reverberate globally.

Iran has sealed off the strait, cutting flows of oil, gas and fertiliser and sending prices soaring, raising fears of food insecurity in developing countries. At the same time, a US blockade of the strait is in place.

Hopes for a second round of talks in Pakistan had centred on the planned visit by Witkoff and Kushner, but Trump cancelled the trip after Iranian state television said Araghchi had no plans to meet US officials there.

On Sunday, Trump told Fox News that if Iran wanted the talks, “they can come to us, or they can call us”.

Trump faces domestic pressure as fuel prices rise following Iran’s closure of Hormuz, with midterm elections due in November. Polls show the war is unpopular among Americans.

Safe transit

Asked whether cancelling signalled renewed fighting, Trump said: “No, it doesn’t mean that.”

On Saturday, Araghchi met Pakistan’s military chief Asim Munir, Prime Minister Shehbaz Sharif and Foreign Minister Ishaq Dar, before travelling to Oman and returning to Islamabad.

He later left for Russia for talks with senior officials, his ministry said.

Russian and Iranian state media confirmed Araghchi’s talks with Putin, citing officials from their respective governments.

Araghchi himself posted on X that the talks in Oman had focused on ensuring safe transit through Hormuz, “to benefit of all dear neighbours and the world”.

“Our neighbours are our priority,” he added.

Iran’s Revolutionary Guards said they had no intention of lifting their blockade, which has roiled energy markets.

“Controlling the Strait of Hormuz and maintaining the shadow of its deterrent effects over America and the White House’s supporters in the region is the definitive strategy of Islamic Iran,” the Guards said on their official Telegram channel.

The United States has imposed a blockade of Iranian ports in retaliation.

Israel strikes Lebanon

Israel and Hezbollah traded blame over violations of the fragile ceasefire in Lebanon, with Prime Minister Benjamin Netanyahu saying the military was “vigorously” targeting the Iran-backed militia as both sides claimed new attacks.

Hezbollah drew Lebanon into the Middle East war on March 2 by firing rockets at Israel to avenge the death of Iran’s supreme leader Ali Khamenei, with Israel responding with strikes and a ground invasion.

But claims that both sides have breached a 10-day ceasefire agreed earlier this month have continued.

Netanyahu told Sunday’s weekly cabinet meeting that Hezbollah’s actions were “dismantling the ceasefire” while Hezbollah said it would respond to Israeli violations and its “continued occupation”.

Lebanon’s health ministry said Israeli strikes on the country’s south on Sunday killed 14 people, including two women and two children, and wounded 37.

The state-run National News Agency reported that Israeli warplanes had struck after evacuation warnings in Kfar Tibnit.

An Israeli strike on Zawtar al-Sharqiyah, another of the flagged villages, destroyed a mosque and another religious building, the news agency said.

Israel, which reported a soldier killed in combat in south Lebanon, says it can act against “planned, imminent or ongoing attacks”.

“This means freedom of action not only to respond to attacks…but also to pre-empt immediate threats and even emerging threats,” Netanyahu said.

AFP

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News

PHOTOS: Newborn twins found abandoned in Benue bush

Published

19 hours ago

April 27, 2026

Oluwagbenga Olaoye

A set of newborn twins were found abandoned by in a bush in Vandeikya Local Government Area of Benue State.

The babies, a boy and girl, were rescued on Saturday, April 25, 2026, by the LGA Task Force during a routine sanitation duty in Vandeikya Township.

The unidentified mother dumped the babies at a bushy slope in Vandeikya, located in Mbaaji, Ningev Council Ward, a place known in the Tiv dialect as “Wangbeen Jor.”

Chief Daniel Orhembega, Chairman of the Task Force, who confirmed the development explained that his men picked up the babies while on their way to dispose of refuse.

He said one of the task force agents heard a baby crying.

When they moved toward the direction of the sound, they saw the newborn twins wrapped in freshly plucked leaves along with the placenta and a gown believed to belong to the runaway mother.

At the time, one baby was crying while the other was deeply asleep.

The twins were immediately picked and handed over to nearby medical personnel, as they required urgent medical attention.

The babies are now under the care of the Vandeikya Local Government Welfare Department.

The Local Government Chairman appealed to the general public around the area to assist in finding the mother by providing any useful information that can lead to disclosure of her identity.