Nigeria’s domestic capital market has received international recognition for its role in restructuring the country’s energy sector. The inaugural tranche of the ₦4 trillion power sector multi-instrument issuance programme has won the prestigious “Debt Deal of the Year” at the African Banker Awards.
Executed under the Presidential Power Sector Debt Reduction Programme (PPSDRP), the seven-year bond issuance stands as one of the largest debt capital market interventions in Nigeria’s history. The initiative aims to clear chronic systemic debts and restore financial sustainability across the electricity value chain.
Restoring Market Confidence
The transaction was fully backed by the full faith and credit of the Federal Government of Nigeria. Despite a challenging macroeconomic environment, the seven-year bond was completely oversubscribed by a mix of retail and institutional investors. This strong participation reflects deep market confidence in the credit structure of the deal.
The African Banker Awards, held annually on the sidelines of the African Development Bank (AfDB) meetings, recognized the deal for its structural innovation and measurable economic impact on Nigeria’s infrastructure.
The Mechanics of the Capital Market Intervention
CardinalStone, a leading Nigerian investment banking and asset management firm, acted as the lead issuing house and financial adviser for the transaction. The firm managed the entire lifecycle of the deal, including regulatory compliance, pricing, investor marketing, and final execution.
Michael Nzewi, Group Managing Director of CardinalStone, noted that the award highlights how local capital markets can resolve deep structural bottlenecks in critical sectors. Onyebuchim Obiyemi, Head of Investment Banking at the firm, added that beyond its scale, the NBET bond demonstrates how innovative financing can unlock liquidity for the wider economy.
A Collaborative Fiscal Effort
The investment house expressed appreciation to key regulatory drivers behind the initiative, including the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the Office of the Special Adviser to the President on Energy, the Nigerian Bulk Electricity Trading Plc, and the Debt Management Office.
By restructuring the power sector’s legacy debts into long-term, yield-bearing public instruments, the initiative aims to reduce the fiscal burden on the federal treasury while building a more bankable, sustainable template for future infrastructure investments.
