By Ihechi Enyinnaya
The Federal Government has assured investors of its commitment to restoring confidence in Nigeria’s power sector as it launched the Investor Forum for the Series II Bond Issuance under the Presidential Power Sector Financial Reforms Programme (PPSFRP).
Speaking at the forum in Abuja on Tuesday, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the administration of President Bola Tinubu had demonstrated its resolve to tackle the financial challenges facing the electricity sector by honouring its commitments and implementing reforms aimed at attracting private investment.
Verheijen said the government was transforming legacy liabilities into investment opportunities through disciplined execution of reforms, adding that credibility and consistency remained the foundation for attracting long-term capital.
According to her, the first phase of the programme, Series I, delivered on its objectives after the Federal Government disbursed about ₦501 billion in February 2026, comprising ₦300 billion in cash and about ₦201 billion through non-cash bond instruments. The funds addressed approximately 22 per cent of obligations under executed settlement agreements with electricity generation companies.
She disclosed that ₦333.12 billion had so far been paid to eight participating generation companies covering 17 power plants that signed participation agreements under the programme.
Verheijen also noted that the government fulfilled its obligation by paying the first Series I bond coupon of about ₦63.5 billion on July 14, 2026, describing the payment as proof of the government’s commitment to meeting financial obligations.
She said the success of the first bond issuance had strengthened investor confidence and improved liquidity across the electricity value chain, enabling participating generation companies to meet outstanding obligations to gas suppliers, lenders and operations and maintenance contractors.
The presidential adviser explained that the Series II bond issuance would extend the settlement of verified legacy debts, improve cash flow within the power sector and provide a stronger financial foundation for attracting long-term private investment.
She urged investors to see the bond not only as a financial instrument but as an investment in Nigeria’s broader power sector reforms aimed at improving electricity supply, reducing dependence on costly alternative energy sources and boosting economic productivity.
Verheijen added that the reforms would ultimately benefit households, students, small businesses and manufacturers by making electricity more reliable and affordable.
She also commended the collaboration among the Federal Ministry of Finance, the Federal Ministry of Power, the Debt Management Office, the Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc and other stakeholders for driving the reform programme.
Reaffirming the government’s commitment to the reforms, Verheijen said Nigeria’s power sector was undergoing significant transformation and called on investors to continue supporting the Tinubu administration’s efforts to build a financially sustainable electricity industry.