The Federal Government has settled ₦333.12 billion in outstanding obligations owed to eight generation companies participating in the Presidential Power Sector Financial Reforms Programme (PPSFRP).
The beneficiary companies include Transcorp Power, Egbin Power Plc and Geregu Power Plc, among others.
Speaking at the Series II Bond Issuance investor forum for the PPSFRP in Abuja on Tuesday, the President’s Special Adviser on Energy, Olu Verheijen, said the payment covered 17 power plants that had executed participation agreements under the programme.
Verheijen disclosed that ₦63.5 billion was paid on schedule and in full as the first Series I coupon payment on 14 July 2026.
She explained that in February, the Federal Government deployed about ₦501 billion — comprising ₦300 billion in cash and approximately ₦201 billion through non-cash bond instruments — to address about 22 per cent of settlement obligations under executed agreements. The remaining obligations, she said, would be covered through Series II and subsequent bond issuances.
According to Verheijen, the Bola Tinubu administration had demonstrated its commitment to ending the financial challenges that previously affected Nigeria’s power sector.
“Through bold policy decisions and disciplined execution, we are converting an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust,” she said.
She added that investor confidence depended on governments fulfilling their commitments.
“Markets do not reward promises. They reward performance. That is why we deliberately chose execution before expansion,” Verheijen said.
She noted that the programme was already improving liquidity across the electricity value chain, enabling participating generation companies to meet obligations to gas suppliers, lenders, and operations and maintenance contractors.
Verheijen said the strong participation recorded in the Series I issuance reflected growing confidence in the reform programme and Nigeria’s wider economic reform agenda.
“Series I proved the model. Series II scales it. This issuance extends the settlement of verified legacy obligations, deepens liquidity throughout the electricity value chain, and further strengthens the financial foundations needed to attract long-term private investment into Nigeria’s power sector,” she said.
She described the initiative as more than a financial transaction, saying it was aimed at improving electricity reliability for households, businesses and manufacturers.
“Ultimately, however, this programme is not only about balance sheets or capital markets. 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,” she added.
Verheijen acknowledged the contributions of the Federal Ministry of Finance, Federal Ministry of Power, Debt Management Office, Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc and the PPSFRP Committee towards the implementation of the programme.
She also appreciated the roles of advisers, including Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited and Olaniwun Ajayi LP, as well as issuing houses, trustees, registrars and other institutions involved in the project.
“Nigeria’s power sector is changing. The reforms are real. The commitments are being honoured. The opportunity is significant,” she said.
