The Federal Government has said its Presidential Power Sector Financial Reforms Programme (PPSFRP) is transforming legacy financial obligations in Nigeria’s electricity sector into liquidity and new investment opportunities.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, stated this on Tuesday at the Investor Forum for the PPSFRP Series II Bond Issuance.
Verheijen said the administration of President Bola Ahmed Tinubu had demonstrated its commitment to ending the fiscal dysfunction that had historically undermined the power sector through “bold policy decisions and disciplined execution.”
According to her, the government is “converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity.”
She said the liquidity generated by the programme, if sustained, would strengthen the electricity value chain, improve operational performance and restore investor confidence in the sector.
“Markets do not reward promises. They reward performance. That is why we deliberately chose execution before expansion,” Verheijen said.
She disclosed that the first series of the bond programme delivered approximately ₦501 billion in February 2026, comprising ₦300 billion in cash and approximately ₦201 billion through non-cash bond instruments.
The funds, she said, addressed approximately 22 per cent of settlement obligations under executed Settlement Agreements, with the balance to be covered through Series II and subsequent issuances.
Verheijen said ₦333.12 billion had so far been settled to eight participating generation companies, covering 17 power plants that had executed participation agreements.
She added that the Federal Government had also paid the first Series I coupon, valued at 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. That is exactly what this Programme has done,” she said.
The presidential aide said the payment of legacy obligations was already producing tangible improvements in the power sector, as participating generation companies were meeting obligations to gas suppliers, lenders and operations and maintenance contractors that had previously gone unmet.
She described the Series I issuance as proof of the model, while the Series II issuance would scale up the reform programme.
“Series I proved the model. Series II scales it,” she said.
According to her, the second issuance would extend the settlement of verified legacy obligations, deepen liquidity across the electricity value chain and strengthen the financial foundations required to attract long-term private investment into the sector.
Verheijen urged investors to see the bond issuance not merely as a financial instrument but as an investment in a broader reform programme aimed at restoring payment discipline, strengthening sector cash flows and crowding in private capital.
She said the ultimate objective of the programme extended beyond balance sheets and capital markets, stressing that improved electricity supply would benefit students, small businesses and manufacturers.
“This Programme is far more than a financial transaction. It is a development mandate,” she said.
The Investor Forum, she added, would provide investors with an opportunity to understand the structure of the Series II issuance and engage with the team behind the programme on the opportunities and safeguards embedded in the transaction.
Verheijen acknowledged the collaboration of the Federal Ministries of Finance and Power, the Debt Management Office, the Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc, the PPSFRP Committee and transaction advisers, including Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited and Olaniwun Ajayi LP.
She also commended the issuing houses, trustees, registrars and other institutions involved in the programme.
“Nigeria’s power sector is changing. The reforms are real. The commitments are being honoured. The opportunity is significant,” she said.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, stated this on Tuesday at the Investor Forum for the PPSFRP Series II Bond Issuance.
Verheijen said the administration of President Bola Ahmed Tinubu had demonstrated its commitment to ending the fiscal dysfunction that had historically undermined the power sector through “bold policy decisions and disciplined execution.”
According to her, the government is “converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity.”
She said the liquidity generated by the programme, if sustained, would strengthen the electricity value chain, improve operational performance and restore investor confidence in the sector.
“Markets do not reward promises. They reward performance. That is why we deliberately chose execution before expansion,” Verheijen said.
She disclosed that the first series of the bond programme delivered approximately ₦501 billion in February 2026, comprising ₦300 billion in cash and approximately ₦201 billion through non-cash bond instruments.
The funds, she said, addressed approximately 22 per cent of settlement obligations under executed Settlement Agreements, with the balance to be covered through Series II and subsequent issuances.
Verheijen said ₦333.12 billion had so far been settled to eight participating generation companies, covering 17 power plants that had executed participation agreements.
She added that the Federal Government had also paid the first Series I coupon, valued at 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. That is exactly what this Programme has done,” she said.
The presidential aide said the payment of legacy obligations was already producing tangible improvements in the power sector, as participating generation companies were meeting obligations to gas suppliers, lenders and operations and maintenance contractors that had previously gone unmet.
She described the Series I issuance as proof of the model, while the Series II issuance would scale up the reform programme.
“Series I proved the model. Series II scales it,” she said.
According to her, the second issuance would extend the settlement of verified legacy obligations, deepen liquidity across the electricity value chain and strengthen the financial foundations required to attract long-term private investment into the sector.
Verheijen urged investors to see the bond issuance not merely as a financial instrument but as an investment in a broader reform programme aimed at restoring payment discipline, strengthening sector cash flows and crowding in private capital.
She said the ultimate objective of the programme extended beyond balance sheets and capital markets, stressing that improved electricity supply would benefit students, small businesses and manufacturers.
“This Programme is far more than a financial transaction. It is a development mandate,” she said.
The Investor Forum, she added, would provide investors with an opportunity to understand the structure of the Series II issuance and engage with the team behind the programme on the opportunities and safeguards embedded in the transaction.
Verheijen acknowledged the collaboration of the Federal Ministries of Finance and Power, the Debt Management Office, the Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc, the PPSFRP Committee and transaction advisers, including Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited and Olaniwun Ajayi LP.
She also commended the issuing houses, trustees, registrars and other institutions involved in the programme.
“Nigeria’s power sector is changing. The reforms are real. The commitments are being honoured. The opportunity is significant,” she said.
