*Photo: Olu Arowolo Verheijen, Special Adviser to the President on Energy, addressing investors on Tuesday *
The Federal Government is set to launch Series II of the Presidential Power Sector Financial Reforms Programme (PPSFRP) bond issuance, aiming to further resolve legacy debts, inject liquidity into the electricity value chain, and attract long-term private investment.
Speaking at the Investor Forum for the programme on Tuesday, Olu Arowolo Verheijen, Special Adviser to the President on Energy, highlighted the Tinubu administration’s progress in transforming the power sector from a fiscal liability into a credible investment opportunity.
“Every successful capital market tells the same story: investors return where governments keep their promises,” Verheijen said. “President Bola Ahmed Tinubu’s administration has demonstrated beyond doubt its commitment to making a clean break from the fiscal dysfunction that once defined Nigeria’s power sector.”
Series I Success Cited as Proof of Concept
Verheijen detailed the achievements of Series I, launched in February 2026. The government deployed approximately ₦501 billion — comprising ₦300 billion in cash and ₦201 billion through non-cash bond instruments — addressing about 22% of settlement obligations under executed agreements. To date, ₦333.12 billion has been paid to eight participating generation companies operating 17 power plants.
The first coupon payment for Series I, amounting to roughly ₦63.5 billion, was made in full on 14 July 2026.
“We met our obligation on schedule,” Verheijen emphasized. “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 noted that participating generation companies have begun meeting obligations to gas suppliers, lenders, and operations & maintenance contractors, signaling improved financial health across the sector.
Series II to Scale Impact
Series II is designed to extend the settlement of verified legacy obligations and deepen liquidity in the electricity value chain.
According to Verheijen, the programme prioritizes execution before expansion, aligning with the Renewed Hope Agenda.
“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 told investors.
The initiative is positioned as more than a financial exercise. Verheijen linked it to real-world benefits: reliable power for students, reduced diesel dependence for small businesses, and improved competitiveness for manufacturers.
Strong Institutional Collaboration
Verheijen acknowledged key partners including the Ministries of Finance and Power, the Debt Management Office, Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc (NBET), and transaction advisers such as Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited, and Olaniwun Ajayi LP.
The forum provided investors and stakeholders an opportunity to engage directly with programme designers on the structure, opportunities, and safeguards of the Series II issuance.
Nigeria’s power sector reforms under the current administration continue to focus on restoring payment discipline and building market confidence after years of challenges. Officials describe the PPSFRP as a critical step toward sustainable electricity supply and broader economic development.