Elektron Finance SPV Plc, the funding arm of Nigeria’s Elektron Energy Development Strategies Limited, has unveiled a N200 billion bond issuance programme to finance a 30MW gas-fired embedded generation plant in Victoria Island, Lagos. The project, expected to begin commercial operations in 2026, aims to provide reliable electricity to one of Nigeria’s most important commercial hubs.
According to a statement dated August 11, proceeds from the bonds will fund the development of the plant, which will feature three high-efficiency 10MW reciprocating gas engines supplied by Wartsila and a dedicated 5km distribution network. The network will supply major commercial areas in Victoria Island under long-term Power Purchase Agreements with prominent corporate customers and the Eko Electricity Distribution Company (EKEDC).
This announcement follows Elektron’s successful issuance of its debut N4.64 billion, 15-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond. Guaranteed by Infrastructure Credit Guarantee Company Plc (InfraCredit) and rated “AAA” by Agusto & Co. and Global Credit Rating Company, the bond was approved by the Securities and Exchange Commission (SEC). The funds are being channelled into the Victoria Island Power Limited (VIPL) project, a subsidiary of Elektron Power Infracom under Elektron Energy.
The project’s distribution network is already substantially complete, while construction of the generation plant is underway. Once operational, the initiative is expected to reduce reliance on diesel generators, deliver cleaner energy to businesses, and serve as a model for decentralized energy delivery in urban centres.
Partnerships and investment backing the project include InfraCredit, ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, Bank of Industry, FBNQuest Merchant Bank, and Stanbic IBTC Infrastructure Fund. The bond issuance was led by Vetiva Advisory Services Limited and Anchoria Advisory Services Limited, with CardinalStone Partners Limited, ARM Capital Partners, FBNQuest Merchant Bank, and Iron Global Markets Limited as joint issuing houses. Custodian Trustees Limited serves as trustee, while legal support came from Detail Commercial Solicitors and Templars.
Tola Talabi, MD and Co-CEO of Elektron Energy, expressed appreciation to investors and partners, noting that their support reflects shared confidence in the company’s capacity to deliver sustainable energy infrastructure. Elektron reiterated its commitment to building a regional energy grid anchored on cleaner gas and renewable energy sources.
The development comes as Nigeria’s broader energy sector sees new momentum. Earlier this year, the Rural Electrification Agency (REA) signed grant agreements with nine renewable energy firms under the World Bank-funded Distributed Access through Renewable Energy Scale-Up (DARES) project. The initiative targets electricity access for 17.5 million Nigerians through the deployment of 1,350 mini-grids across the country.
