By Chesa Chesa
The Federal Government on Tuesday reaffirmed its commitment to restoring financial stability in Nigeria’s electricity sector as it convened the Investor Forum for the Series II Bond Issuance under the Presidential Power Sector Financial Reforms Programme (PPSFRP), positioning the initiative as a critical step toward attracting long-term private investment into the industry.
Speaking at the forum in Abuja, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the administration of President Bola Ahmed Tinubu had prioritised execution over promises by honouring commitments made under the first phase of the programme.
According to her, the government’s reforms are transforming legacy liabilities in the power sector into investable assets capable of strengthening liquidity across the electricity value chain.
“Every successful capital market tells the same story: investors return where governments keep their promises,” she said. “We are converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity.”
Verheijen noted that the Presidential Power Sector Financial Reforms Programme, implemented under the Renewed Hope Agenda, was designed to restore payment discipline, improve operational performance and rebuild investor confidence in Nigeria’s power sector.
She disclosed that under Series I of the programme, the Federal Government deployed approximately ₦501 billion in February 2026, comprising ₦300 billion in cash and about ₦201 billion through non-cash bond instruments. The intervention addressed roughly 22 per cent of verified settlement obligations under executed settlement agreements, with the outstanding balance expected to be cleared through Series II and subsequent issuances.
She added that ₦333.12 billion had so far been paid to eight participating generation companies covering 17 power plants that signed participation agreements.
Verheijen also announced that the government met its first debt service obligation under the programme, paying the inaugural Series I coupon of approximately ₦63.5 billion in full on July 14, 2026.
“In sovereign finance, trust compounds just as powerfully as interest. Governments that expect private capital to invest must first demonstrate that their own commitments will be honoured,” she said.
She explained that the improved liquidity had already enabled participating generation companies to meet outstanding obligations to gas suppliers, lenders and operations and maintenance contractors, helping to stabilise operations across the electricity value chain.
Describing the next phase as an expansion of a proven model, Verheijen said the Series II issuance would deepen liquidity, extend the settlement of verified legacy obligations and strengthen the financial foundation required to attract sustainable private capital into the sector.
She urged investors to view the bond issuance not only as a financial investment but also as a contribution to Nigeria’s economic development.
“By participating, you are not simply purchasing a financial instrument. You are investing in a reform programme designed to restore payment discipline, strengthen sector cash flows, crowd in private capital, and accelerate Nigeria’s economic transformation,” she said.
The presidential adviser stressed that the programme’s benefits would ultimately be felt by ordinary Nigerians through improved electricity supply, reduced dependence on expensive alternative energy sources and enhanced industrial competitiveness.
She also acknowledged the collaboration of the Federal Ministry of Finance, Federal Ministry of Power, Debt Management Office, Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc, members of the PPSFRP Committee and transaction advisers, including Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited and Olaniwun Ajayi LP, for supporting the implementation of the initiative.
