FG Launches Series II Bond Issuance Under Presidential Power Sector Financial Reforms Programme

The Federal Government has hosted an Investor Forum for the Series II Bond Issuance of the Presidential Power Sector Financial Reforms Programme, PPSFRP, aimed at settling legacy debts and strengthening liquidity across Nigeria’s electricity value chain.

The forum held Tuesday with Mrs. Olu Arowolo Verheijen, the Special Adviser to the President on Energy, delivering the keynote remarks.

In her remarks, Verheijen said the Tinubu administration is working to convert an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust.

“Every successful capital market tells the same story: investors return where governments keep their promises. Today’s forum is about exactly that,” Verheijen said.

She stated that the PPSFRP was established under the Renewed Hope Agenda to convert “yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity,” with the goal of improving operational performance and restoring confidence in the power sector.

The Presidential aide said Series I of the programme has been executed as planned.

In February 2026, the Federal Government deployed approximately ₦501 billion, comprising ₦300 billion in cash and about ₦201 billion in non-cash bond instruments. This addressed approximately 22 percent of settlement obligations under executed Settlement Agreements.

To date, ₦333.12 billion has been paid to eight participating generation companies covering 17 power plants that signed participation agreements.

Verheijen also confirmed that the first Series I coupon payment of about ₦63.5 billion was made in full on July 14, 2026.

“Series I proved the model. Series II scales it,” she said. “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 added that participating generation companies are now meeting obligations to gas suppliers, lenders, and operations and maintenance contractors that were previously outstanding.

Verheijen said bankability begins with governments honouring contracts and creating predictable rules.

“Capital follows credibility. That principle has guided every stage of this Programme,” she noted.

She added the reforms extend beyond balance sheets, adding that the programme is expected to improve electricity reliability for students, reduce diesel costs for small businesses, and improve competitiveness for manufacturers.

“By participating, you are not simply purchasing a financial instrument. You are investing in a reform programme designed to restore payment discipline, strengthen sector cash flows, crowd in private capital, and accelerate Nigeria’s economic transformation,” she told investors.

The Special Adviser acknowledged the collaboration of the Federal Ministry of Finance, the Federal Ministry of Power, the Debt Management Office, the Bureau of Public Enterprises, Nigerian Bulk Electricity Trading Plc, NBET, and the PPSFRP Committee.

She also recognized transaction advisers including Africa Finance Corporation, CardinalStone Partners, ENR Resources Limited, and Olaniwun Ajayi LP, as well as issuing houses, trustees, and registrars involved in the process.

The forum provided investors and financial institutions the opportunity to receive details on the structure of the Series II issuance and engage with the implementation team on opportunities and safeguards within the programme.

“Nigeria’s power sector is changing. The reforms are real. The commitments are being honoured. The opportunity is significant,” Verheijen concluded.