The Federal Government has called on local and international investors to back the second series of the Presidential Power Sector Financial Reforms Programme (PPSFRP) bond issuance, saying the initiative is restoring confidence in Nigeria’s electricity sector through disciplined fiscal reforms and timely settlement of legacy debts.
Speaking at the Investor Forum for the Series II bond issuance in Abuja on Monday, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Tinubu administration had demonstrated its commitment to transforming the power sector by honouring its financial obligations and creating a more bankable investment environment.
According to her, the government is converting “yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity,” with the aim of strengthening the electricity value chain, improving operational performance and attracting long-term private capital.
Verheijen said the administration deliberately prioritised execution over expansion, stressing that investors reward performance rather than promises.
She noted that under the Series I bond issuance completed in February 2026, the Federal Government deployed approximately ₦501 billion, comprising ₦300 billion in cash and about ₦201 billion in non-cash bond instruments, to settle around 22 per cent of verified obligations under executed settlement agreements with electricity generation companies.
She disclosed that ₦333.12 billion has so far been paid to eight participating generation companies, covering 17 power plants that signed participation agreements under the programme.
She added that the government also fulfilled its first coupon payment obligation under Series I, paying about ₦63.5 billion on July 14, 2026, describing the milestone as evidence that the government is committed to meeting its financial obligations.
“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.
Verheijen explained that the timely settlements have enabled participating generation companies to meet obligations to gas suppliers, lenders and operations and maintenance contractors, thereby improving liquidity across the power sector.
She said the strong investor participation recorded during the first bond issuance reflected growing confidence in both the reform programme and the Federal Government’s broader economic agenda.
According to her, the Series II issuance is designed to extend the settlement of verified legacy obligations, deepen liquidity across the electricity value chain and strengthen the financial foundation required to attract sustainable private investment into the sector.
She urged investors to view the bond not merely as a financial instrument but as an opportunity to support reforms aimed at restoring payment discipline, strengthening sector cash flows and accelerating Nigeria’s economic transformation.
Highlighting the broader impact of the reforms, Verheijen said improved electricity supply would benefit students, small businesses and manufacturers by reducing reliance on expensive alternative energy sources and improving productivity.
She described the reform programme as a development initiative that goes beyond financial markets, saying it is intended to deliver reliable electricity that supports economic growth and improves the quality of life for Nigerians.
The presidential adviser also commended the Federal Ministry of Finance, the Federal Ministry of Power, the Debt Management Office, the Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc, the Presidential Power Sector Financial Reforms Programme Committee and transaction advisers for their roles in implementing the initiative.
She reaffirmed the Federal Government’s commitment to sustaining reforms in the power sector, stating that the administration remains focused on building investor confidence through transparency, policy consistency and timely fulfilment of its obligations.