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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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Nigeria, US forces killled over 20 ISWAP fighters in fresh operation – DHQ

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The Defence Headquarters on Monday said Nigerian troops, in collaboration with the United States Africa Command, killed more than 20 Islamic State West Africa Province fighters during fresh coordinated air strikes in the North-East.

The DHQ said the operation was carried out in the general area of Metele following intelligence reports on the convergence and movement of terrorist elements within the region.

In a statement by the Director of Defence Information, Maj. Gen. Samaila Uba, the military said the strikes formed part of sustained operations aimed at dismantling terrorist networks and denying insurgents safe haven in the country.

“The Defence Headquarters, in close coordination with United States Africa Command, wish to update the general public on the continuation of coordinated operations against ISIS militants across the North East Nigeria, with additional air strike operations successfully executed in the general area of Metele.

“Following observed convergence and migration of terrorist elements, multiple air strikes were conducted resulting in the elimination of more than 20 ISIS/ISWAP fighters,” the statement partly read.

The military said the ongoing operations were designed to disrupt terrorist activities, remove fighters from the battlefield and prevent insurgents from regrouping.

“The Armed Forces of Nigeria will continue to aggressively defend the sovereignty, security and territorial integrity of the nation,” the statement added.

Uba stressed that terrorists threatening citizens and national stability would be located and defeated, saying that there would be no safe haven for all terrorists anywhere in Nigeria.

“Terrorists who threaten our citizens, communities and national stability will be located and defeated. There will be no safe haven for all terrorists anywhere in Nigeria,” he said.

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This is coming after the announcements by United States President Donald Trump and President Bola Tinubu confirming the killing of ISIS kingpin, Al-Minuki during a joint counterterrorism operation conducted by Nigerian and US forces.

Trump described the slain militant as the most active terrorist in the world and claimed he was the second in command of ISIS globally,” adding that the terrorist leader believed he could evade capture in Africa.

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Bus knocks pedestrian dead in Ogun

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A pedestrian has lost his life after being knocked down by a Toyota Coaster bus at Imowo, along the Imowo-Ibadan Road inward Ijebu Ode in Ogun State.

PUNCH Metro gathered on Monday from the spokesperson for the Ogun State Traffic Compliance and Enforcement Agency, Babatunde Akinbiyi, that the fatal accident occurred at about 4:45 pm on Sunday and caused serious traffic congestion along the route due to the obstruction caused by the bus.

He noted that TRACE operatives and police officers from the Obalende Division were immediately deployed to the scene to manage traffic and rescue operations.

According to him, the accident happened when the pedestrian allegedly failed to check the other side of the road before attempting to cross.

The agency noted that there was a diversion to a single lane outward Ijebu Ode due to ongoing road rehabilitation works along the axis.

The statement read, “According to eyewitness account, the pedestrian forgot to check the other side of the road before crossing the road. There is diversion to one lane due to ongoing road rehabilitation on the axis.”

Akinbiyi added that no other injuries were recorded in the incident aside from the death of the male pedestrian.

He further disclosed that its operatives controlled vehicular movement around the scene to ease traffic congestion and prevent secondary accidents.

“TRACE operatives assisted in carrying the presumed dead into the OGSAS ambulance, while the body was subsequently conveyed to the General Hospital mortuary, Ijebu Ode,” the statement added.

The TRACE Head of Media stressed further that the accidented Toyota Coaster bus was later evacuated from the road and moved to the Police Area Command, Igbeba, for further investigation.

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The agency confirmed that normal vehicular movement had been restored after the evacuation exercise.

PUNCH Metro reported earlier that an auto crash along the Third Mainland Bridge left a policeman riding on a motorcycle, dead after being hit by a Lexus car.

The driver of the car was said to have surrendered himself to the police following the incident.

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FG cracks down on unapproved contract variations in MDAs

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The Federal Government, through its Bureau of Public Procurement, on Sunday barred government Ministries, Departments, and Agencies from processing upward revisions of contract sums without first obtaining a Bureau certificate.

This was as it issued other sweeping guidelines that centralised the review of all contract variations and scope modifications under its authority. According to a statement signed by its Head of Press and Public Relations, Zira Nagga, the Bureau said the reform is designed to close one of the most persistent channels for cost inflation and corruption in Nigeria’s public procurement system.

The guidelines, issued pursuant to Sections 5(a) and (o) of the Public Procurement Act 2007, give effect to a Federal Executive Council-approved policy conveyed by the Secretary to the Government of the Federation in December 2025.

The statement is titled ‘Contract Variations: BPP Releases Guidelines.’

The new guidelines replace an earlier 2013 framework that required Presidential approval only for variations above 15 per cent of the initial contract sum or N1bn.

Under the new framework, every request for a variation order, fluctuation claim, or scope modification, regardless of size, must first be submitted to the BPP for review and certification before proceeding to the relevant approving authority.

Nagga noted that a BPP Certificate of No Objection, valid for six months, is now a mandatory precondition for any further action. Variations processed without it will attract sanctions under the Public Procurement Act 2007, including suspension of responsible officers and debarment of contractors, the statement said.

It also quoted the Bureau’s Director-General, Adebowale Adedokun, as saying, “Variations must not become a backdoor for cost inflation and scope creep.

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“These guidelines ensure that every adjustment to a public contract is necessary, justified, and delivers value to Nigerians. The BPP will apply these rules rigorously and fairly across all MDAs.”

Accordingly, the guidelines draw a firm line between permissible and impermissible grounds for variation. Acceptable grounds include unforeseen site conditions, material errors in design or bills of quantities, statutory changes after contract execution, significant price escalation due to macroeconomic shocks or force majeure, and value engineering improvements that reduce cost without altering scope.

Variations arising from inadequate planning, avoidable design flaws, or the addition of new components not contemplated in the original contract scope will be rejected outright, Nagga noted.

Such additions, the guidelines stated, must be procured as entirely separate contracts, a provision aimed at blocking the practice of using variations to effectively award new projects under the cover of an existing contract.

On fluctuation claims, adjustments for changes in the cost of labour, materials, and exchange rates, the guidelines introduced new deterrents against deliberate project delays.

It stated that, going forward, contractors found to have intentionally slowed down execution in order to generate larger fluctuation claims will be denied those claims and may be debarred if the claims are found to be bogus or overstated.

The revised approving authority thresholds are now tied to the augmentation sum, the amount of the increase, rather than the total revised contract cost. Works variations of N10bn and above will require Federal Executive Council approval.

It stated, “Those between N5bn and N10bn go to the Ministerial Tenders Board; those between N75m and N5bn to the Parastatal Tenders Board; and anything below N75m for works, or N50m for goods and services, can be approved at the Accounting Officer level.”

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Similar thresholds apply to goods and services procurement. To address the upstream cause of many avoidable variations, the guidelines mandated the use of approved final designs for all procurements from the outset.

It also stated that the use of preliminary or flawed designs that subsequently generate unnecessary variations will attract regulatory sanctions, a provision targeting the entrenched practice of commencing projects with incomplete engineering designs.

On transparency, the BPP said all MDAs are required to publish details of every approved variation, including the contractor’s name, original contract sum, augmentation amount, revised contract sum, and grounds for the increase, on their websites and the BPP portal within 30 days of Tenders Board approval.

The BPP said it will also periodically submit council notes to the Federal Executive Council on reviewed and approved variations across government. The guidelines take immediate effect and apply to all ongoing projects regardless of when the original contract was awarded.

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