The Federal Government on Tuesday launched the second series of its Presidential Power Sector Financial Reforms Programme (PPSFRP) bond, after successfully deploying the first tranche and meeting its inaugural interest payment, in a move aimed at clearing legacy debts and attracting more private investment into Nigeria’s electricity sector.
The government said ₦333.12 billion has so far been paid to eight electricity generation companies operating 17 power plants under the programme, following the deployment of about ₦501 billion under Series I earlier this year. The remaining verified settlement obligations will be covered through the Series II bond and subsequent issuances.
Speaking at the investor forum for the Series II bond issuance in Abuja, the Special Adviser to the President on Oil and Gas, Olu Arowolo Verheijen, said the programme demonstrates the Tinubu administration’s commitment to restoring financial discipline and rebuilding investor trust in Nigeria’s power sector.
She disclosed that the first bond issuance, completed in February 2026, comprised ₦300 billion in cash and approximately ₦201 billion in non-cash bond instruments, addressing about 22 per cent of the settlement obligations covered by executed settlement agreements with participating generation companies.
Verheijen said the government had also fulfilled its first payment obligation under the programme, paying about ₦63.5 billion as the inaugural coupon on July 14.
“Markets do not reward promises. They reward performance,” she said, adding that governments seeking long-term private investment must first demonstrate credibility by honouring contracts, meeting financial obligations and providing predictable rules.
She said the successful execution of Series I had already begun improving liquidity across the electricity value chain, enabling participating generation companies to settle outstanding obligations to gas suppliers, lenders and operations and maintenance contractors.
According to her, strong investor participation in the first issuance reflected growing confidence in both the reform programme and the Federal Government’s broader economic agenda.
Verheijen said the second bond issuance would extend the settlement of verified legacy obligations while injecting additional liquidity into the sector to improve operational performance and reinforce the financial sustainability of the electricity market.
She urged investors to view the bond as more than a financial instrument, describing it as an opportunity to support reforms aimed at restoring bankability to Nigeria’s power sector and unlocking long-term investment needed to expand electricity supply and support economic growth.
The investor forum brought together government officials, institutional investors, financial institutions, development partners and transaction advisers ahead of the Series II issuance, which the government expects will deepen ongoing reforms and strengthen the financial foundations of Nigeria’s electricity industry.
About PPSFRP
The Presidential Power Sector Financial Reforms Programme was established under President Bola Tinubu’s Renewed Hope Agenda to resolve long-standing payment arrears in the electricity sector, restore payment discipline, strengthen cash flows across the power value chain and create the conditions for increased private sector investment.
