FG moves to raise Series II Power Bond, says reforms restoring investor confidence
President Bola Tinubu
Nike Popoola
The Federal Government has reaffirmed its commitment to restoring financial stability in Nigeria’s electricity industry with the launch of the Presidential Power Sector Financial Reforms Programme (PPSFRP) Series II Bond Issuance, aimed at settling legacy debts and attracting long-term private investment into the sector.
Speaking at the Investor Forum for the PPSFRP Series II Bond Issuance in Abuja on Tuesday, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Tinubu administration had demonstrated its resolve to reform the power sector by honouring financial commitments and strengthening investor confidence.
According to her, the government is transforming “yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity,” noting that the initiative is designed to improve operational performance across the electricity value chain and restore confidence among investors and market participants.
Verheijen 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 about 22 per cent of settlement obligations captured under executed settlement agreements.
She added that the government had so far settled ₦333.12 billion to eight participating generation companies covering 17 power plants that executed participation agreements.
“We met our obligation on schedule. The first Series I coupon of about ₦63.5 billion was paid in full on July 14, 2026,” she said.
Verheijen noted that governments seeking private capital must first demonstrate credibility by honouring contracts and creating predictable rules, stressing that the administration deliberately prioritized execution over expansion in implementing the programme.
She said the success of Series I had already translated into improved liquidity across the power sector, enabling participating generation companies to meet obligations to gas suppliers, lenders and operations and maintenance contractors.
“Capital follows credibility. That principle has guided every stage of this Programme,” she said.
The Special Adviser explained that Series II would extend the settlement of verified legacy obligations, deepen liquidity throughout the electricity value chain and strengthen the sector’s financial foundations.
She described the bond issuance as more than a financial transaction, saying it would support broader economic development by improving electricity reliability for households, businesses and manufacturers.
“It is about the student who gains another hour to study because electricity is reliable. It is about the small business owner who no longer depends on expensive diesel to remain open. It is about the manufacturers whose competitiveness improves because power becomes more dependable and affordable,” she stated.
Verheijen thanked investors for their confidence in the programme and acknowledged the contributions of key stakeholders, including 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 transaction advisers.
She also commended Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited and Olaniwun Ajayi LP, alongside issuing houses, trustees and registrars, for supporting the initiative.
She expressed optimism that ongoing reforms under President Bola Ahmed Tinubu’s administration would continue to transform the power sector, improve payment discipline and unlock additional private capital for infrastructure development.
“The reforms are real. The commitments are being honoured. The opportunity is significant,” Verheijen said.
