Power sector reforms: FG seeks investor support for second bond issuance

The federal government on Tuesday courted investors ahead of the second series of its Presidential Power Sector Financial Reforms Programme bond issuance, saying ongoing reforms in the electricity sector are restoring investor confidence and strengthening the financial viability of the industry.

Speaking at the Investor Forum for the Presidential Power Sector Financial Reforms Programme (PPSFRP) Series II Bond Issuance in Abuja, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Tinubu administration had moved to address longstanding financial challenges in the power sector by honouring obligations and improving liquidity across the electricity value chain.

She said the government was transforming “yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity,” adding that the reforms were designed to create a more bankable and investment-friendly electricity market.

According to Verheijen, the administration deliberately focused on implementing reforms before seeking additional investments, arguing that sustained execution was key to attracting private capital.

She disclosed that under the first series of the programme, launched in February 2026, the Federal Government deployed about ₦501 billion, comprising ₦300 billion in cash and approximately ₦201 billion in non-cash bond instruments, to settle about 22 per cent of verified legacy obligations owed to electricity generation companies.

She added that ₦333.12 billion had so far been paid to eight participating generation companies operating 17 power plants that executed participation agreements under the programme.

Verheijen also noted that the first coupon payment on the Series I bond, valued at about ₦63.5 billion, was paid in full on July 14, 2026, describing it as evidence of the government’s commitment to meeting its financial obligations.

“Governments that expect private capital to invest must first demonstrate that their own commitments will be honoured,” she said.