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FG begins N4tn GenCos debt repayment with bonds

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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.

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“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.

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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.

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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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Step-by-step guide for contactless passport renewal for Nigerians abroad

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The Nigeria Immigration Service has released an updated step-by-step guide for Nigerians living abroad to renew their passports through its Contactless Passport Application System.

The Service announced the update in a post on its official X handle on Tuesday, encouraging Nigerians in the diaspora to take advantage of the digital platform.

According to the Service, the application process involves the following steps:

1. Visit the official NIS Passport Application portal.
2. Select Continue from the pop-up window.
3. Click Apply for Renewal/Re-issue.
4. Create an account and verify your identity using your National Identification Number and date of birth.
5. Complete the application form and choose your preferred processing embassy or high commission.
6. Upload the required documents.
7. Pay the passport fee for your selected booklet.
8. Obtain your Application ID and Reference Number.
9. Select the Contactless option under the Application Status/Book Appointment section.
10. Review the contactless instructions and click “I Understand and Opt In.”
11. Download the NIS Mobile App.
12. Log in or create a profile on the app.
13. Select Passport Application Services.
14. Click Passport Biometrics Enrolment, enter your Application ID and Reference Number, and check your eligibility.
15. Capture your facial image and fingerprints.
16. Complete the liveness verification.
17. Pay the contactless service fee.
18. Submit your biometrics.

The Service, however, noted that not all applicants would qualify for the contactless process.

“If response is INELIGIBLE, then it means applicant should return to the landing page of the portal to book physical appointment at the Embassy/High Commission,” it stated.

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For applicants who successfully complete the contactless biometric enrolment, the NIS said additional documents must be forwarded to the selected processing mission.

“Upon successful completion of biometrics via Contactless App, applicant should print-out the Application form, passport booklet payment, biometric payment, current Passport and enclose all in a self-addressed return envelope to the processing embassy selected during the application process,” the Service said.

It added that applicants would be able to monitor the progress of their applications after submission.

“Applicant may track successful application two weeks after submission via https://track.immigration.gov.ng or on the NIS Mobile App,” the Service added.

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PFIPC scandal: Ex-SGF Babachir Lawal suspects ‘big racket’ behind ‘fake’ agency’s budget code

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A former Secretary to the Government of the Federation, Babachir Lawal, has called for a judicial inquiry into the controversy surrounding the alleged fake Presidential Fiscal and Infrastructure Projects Council (PFIPC), arguing that the scandal points to deep institutional failures rather than a simple administrative error.

Speaking in an interview with ARISE NEWS on Monday, Lawal said the circumstances surrounding the alleged agency suggested the existence of a wider network that enabled it to function within government processes despite questions over its legal status.

He insisted that an administrative investigation alone would be insufficient. “I don’t think it should even be administrative alone; it should be a judicial inquiry”, the former SGF clearly stated.

Lawal questioned claims surrounding an alleged ₦27.5bn take-off grant reportedly linked to the agency, asking how such funds could have been approved and released if the organisation had no legal basis.

“Nigerians are talking about how N1.3bn was inserted into the budget. The man himself first said the quarrel came about because he refused to part with 48% of the 27-point-something billion Naira take-off grant. That money has been spent before this budget office was looking for the budget.

“Who gave him the money? It was not appropriated for; it’s not in any budget, that N27.5bn Naira for which he says somebody demanded 48%. Who gave him the money? How did the process of generating the request for the release come up? How did it go through?

“We are just talking about the tip of the iceberg here. Down there, before we got to here, N27.5bn had already been disbursed, according to him, as a take-off grant. How did that money get to him? It was not in the budget. So this is what should frighten us. If such money can go to a fictitious organisation, we only now begin to see it when we are quarrelling about how it got into the budget. How did that money get to them?”, Babachir queried.

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The former SGF argued that the controversy only became public because of disagreements over the sharing of funds rather than because government oversight mechanisms functioned effectively.

He continued,… “So you see, that’s how we got to know this to start with. That is the reason why we got to know this on his side of the coin. It’s about the sharing of the N27.5bn. That’s why the thing came up. So it didn’t work. It should have worked before that money left the government coffers into the account of the agency.”

Lawal also alleged that the scandal reflected broader institutional weaknesses within the current administration, arguing that the Office of the SGF should have detected any irregularities before the matter progressed through official channels.

He maintained that the SGF’s office bears responsibility for identifying and flagging agencies without legal backing before their requests or budgets proceed through government.

He said, “It’s institutional compromise, because in this, I sense there’s quite a big racket going on somewhere along the line. If the agency was created by maybe one big man alone, and then he wants to go through the budget process, the budget office assigns the budget code according to the chart of accounts in GIFMIS. So, how did they manage to assign the budget code for this agency that does not exist? Who inserted it?

“Because first of all, the budget office issues a budget call circular to MDAs, and everybody starts to prepare his budget according to the budget line. They give you ceilings, and you prepare your budget and forward it to the budget office as an agency or ministry. Now, the Ministry of Budget and Planning would, in our time, call every MDA to come and defend its budget. Now, if you don’t exist, how did they recognise that you are a genuine entity? Who gave out the budget code and allowed their budget to pass?

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“That’s what oversight is. The SGF should be able to know, because before it gets to the National Assembly, that budget goes through the SGF. Unless there’s a dereliction of duty by the SGF’s office, the responsibility to flag that this is a fake agency would have come from them.”

Lawal further criticised the National Assembly, accusing lawmakers of failing to thoroughly scrutinise budget proposals.

“It is a legislative oversight. This government—this National Assembly—has no interest in scrutinising the budget that comes before them. Most of the legislators just go in there to earn their salaries and collect allowances and go. They don’t scrutinise the budget line by line. We all know how this particular government works. There are some people that when they talk, nobody else has the authority to contravene.”

He also suggested that public attention should focus not only on the agency’s legal status but on the individuals who allegedly enabled its operations.

“Why are you interested in N27.5bn that had already been collected and spent? We are talking about an agency that we are claiming doesn’t exist. Maybe it exists, but it doesn’t have a legal framework for its existence. But it exists. And there are a lot of powerful people that make sure it exists in that form.

“Those are the people we need to expose. The Chief of Staff, in particular, is so powerful. The SGF is there, just reneging on his responsibilities. And nothing has happened now”, he concluded.

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Fake Agency Scandal: Gbajabiamila threatens Adeyemi with N10bn defamation suit

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Chief of Staff to the President, Femi Gbajabiamila, ha threatened to initiate legal steps against Prince Adeniyi Adeyemi, and demand N10 billion in damages over allegations linking him to murder, bribery and other criminal activities.

The move was conveyed in a letter dated July 6, 2026, signed by Senior Advocate of Nigeria, Kemi Pinheiro, on behalf of Pinheiro LP, the Chief of Staff’s legal representatives.

The dispute stems from a press conference held by Adeyemi on June 25, during which he accused Gbajabiamila of seeking a share of the alleged take-off funds of the Presidential Foreign Intervention Promotion Council (PFIPC), receiving money through intermediaries, abusing his office and participating in efforts to conceal wrongdoing.Death & Tragedy

During the briefing, Adeyemi also referred to the Chief of Staff as “a murderer” and “an assassin”.

The Presidency has consistently maintained that the PFIPC is a fictitious organisation, despite its appearance in the 2026 Appropriation Act.

Gbajabiamila’s lawyers dismissed all the allegations as entirely false and defamatory, saying they were intended to damage his reputation.

The letter stated: “not only false but gravely defamatory,” adding that the allegations were “designed to portray our client as corrupt, dishonest, criminally culpable, morally bankrupt, administratively incompetent, a murderer and unfit to occupy public office.”

According to the legal team, Adeyemi is already standing trial before the Federal High Court in Abuja in Charge No. FHC/ABJ/CR/652/2026, FRN v. Prince Adeniyi Adeyemi Matthew & Ors, over allegations including forgery of an appointment letter bearing Gbajabiamila’s purported signature and the alleged counterfeiting of Presidential letter-headed papers to present himself as a government official.Nigeria Investment Guide

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The lawyers further rejected Adeyemi’s claims that Gbajabiamila demanded 48 per cent of a purported N27.4 billion take-off grant for the council, amounting to about N12.5 billion, or that he received N400 million through proxies connected to appointments within the organisation.

Other allegations dismissed in the letter included claims that the Chief of Staff intimidated individuals and media organisations, manipulated budget processes, attempted to misuse security agencies and performed official duties while under the influence of intoxicating substances.Trending News Feed

Gbajabiamila also denied ever having any relationship with Adeyemi.

“You have never at any time met, interacted with, communicated with, or had any form of personal or official dealing whatsoever with him,” the lawyers wrote, adding that the decision to “fabricate and publish allegations against a person with whom you have had absolutely no relationship or interaction underscores the reckless, baseless and malicious nature of your publication.”

The legal team also criticised the timing of the allegations, noting that they were made after criminal proceedings had already been instituted against Adeyemi.

“It is even more disturbing to our client that you resorted to defaming him through your press statements after a criminal Charge had been filed against you,” the letter stated.

It added, “Trial by media remains unknown to Nigerian law and cannot be a substitute for due process.”Nigeria Investment Guide

Gbajabiamila’s lawyers demanded that Adeyemi immediately stop making further defamatory statements, remove all related videos, recordings and transcripts from every platform, issue a full retraction and apology in at least five national newspapers and across all social media platforms used to circulate the claims, and provide a written undertaking that he would refrain from making further allegations.

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The letter warned that failure to comply would result in both criminal defamation proceedings under the laws of the Federal Capital Territory and a civil lawsuit seeking N10 billion in aggravated and exemplary damages. The damages, it said, would be donated to a charity chosen by Gbajabiamila. The legal action would also seek a perpetual injunction and a court order compelling the publication of an apology.

The controversy centres on the PFIPC, which was listed in the 2026 Appropriation Act under the title Presidential Economic Advisory Council/Presidential Foreign Intervention Promotion Council and received more than N1.3 billion in budgetary allocations, including about N803 million for personnel, N200 million for overhead and N300 million for capital expenditure.

Adeyemi had argued during his June 25 press conference that an agency included in a budget signed by the President could not be regarded as non-existent.

However, the Presidency insists the council is fraudulent and has no legal existence.

Meanwhile, human rights lawyer Femi Falana has argued that the Presidency lacks the constitutional authority to clear anyone involved in the dispute and has called for an independent investigation into the allegations against both Gbajabiamila and Adeyemi.

Adeyemi is scheduled to appear before the Federal High Court on July 27, 2026.

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