Tinubu’s Power Reforms Gain Momentum as FG Unveils Series II Bond to Deepen Electricity Sector Recovery
The Federal Government has launched the Investor Forum for the Series II Bond Issuance under the Presidential Power Sector Financial Reforms Programme (PPSFRP), reaffirming its commitment to restoring financial stability in Nigeria’s electricity sector and attracting long-term private investment.
Speaking at the forum in Abuja on Tuesday, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the President Bola Tinubu administration had made significant progress in reforming the power sector by honouring financial obligations and rebuilding investor confidence.
According to Verheijen, the government is transforming legacy liabilities into investment opportunities through disciplined fiscal reforms under the Renewed Hope Agenda.
She noted that the first phase of the programme, Series I, successfully delivered on its commitments, with the Federal Government deploying about ₦501 billion in February 2026. The amount comprised ₦300 billion in cash and approximately ₦201 billion in non-cash bond instruments, settling about 22 per cent of obligations captured under executed settlement agreements with electricity generation companies.
She disclosed that ₦333.12 billion had so far been paid to eight participating generation companies operating 17 power plants, while the government also met its first coupon payment obligation of approximately ₦63.5 billion on July 14, 2026.
Verheijen said the timely fulfilment of these obligations had strengthened confidence among investors and demonstrated the government’s determination to honour its commitments.
“Markets do not reward promises; they reward performance. That is why we deliberately chose execution before expansion,” she said.
She explained that the Series II Bond Issuance would extend the settlement of verified legacy debts, improve liquidity across the electricity value chain and create a stronger financial foundation for sustained private sector investment.
According to her, the programme has already enabled participating power generation companies to meet outstanding obligations to gas suppliers, lenders and maintenance contractors, thereby improving operational performance across the sector.
Verheijen described the initiative as more than a financial transaction, saying it was aimed at delivering reliable electricity to homes, businesses and industries while supporting Nigeria’s broader economic transformation.
She urged investors to take advantage of the opportunity, assuring them that the Tinubu administration remained committed to transparent reforms, contract sanctity and predictable policies that would continue to strengthen the investment climate.
She 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, members of the PPSFRP Committee and the programme’s financial and legal advisers for their roles in driving the reforms.
The Presidential Power Sector Financial Reforms Programme is designed to address long-standing financial challenges in the electricity sector, restore payment discipline and improve the sector’s attractiveness to domestic and international investors.
