JamzNG Latest News, Gist, Entertainment in Nigeria
Special Adviser to President Bola Tinubu on Energy, Olu Arowolo Verheijen, said on Tuesday that the federal government had fulfilled its financial obligations to power companies under a settlement agreement.
Speaking at the Investors Forum for the Presidential Power Sector Financial Reform Program (PPSFRP) – Series I, he said the administration of President Bola Ahmed Tinubu has demonstrated beyond doubt its commitment to making a clean break from the fiscal dysfunction that once defined Nigeria’s power sector.
He said that through bold policy decisions and disciplined execution, the government is converting an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust.
“As of February 2026, the Federal Government distributed approximately ₦501 billion, 300 billion naira in cash and approximately ₦201 billion through non-monetary debt instruments, addressing approximately 22% of the settlement obligations under the entered into settlement agreements, with the balance to be covered through Series II and subsequent issuances.
“To date, ₦333.12 billion has been paid to the eight participating generating companies, covering seventeen power plants that have entered into participation agreements.
“We met our commitment on schedule. The first Series I coupon of approximately ₦63.5 billion was paid in full on July 14, 2026.
“Such liquidity, if sustained, will strengthen the entire electricity value chain, improve operational performance and restore confidence across the sector. This is exactly what the Presidential Energy Sector Financial Reform Program was established to do under the Renewed Hope agenda,” he noted.
He said bankability doesn’t start in financial markets. It all starts with governments honoring contracts, fulfilling obligations and creating predictable rules. Capital follows credibility. This principle guided every phase of the program.
According to her, credibility is already translating into tangible improvements across the industry. Participating generation companies are meeting obligations to gas suppliers, financiers and operations and maintenance contractors that had not previously been met. The strong investor participation in Series I was therefore no coincidence. This reflects growing confidence in both this program and Nigeria’s broader reform agenda. We are grateful to all the institutions that have placed this trust in us.
This issuance extends fulfillment of verified legacy obligations, increases liquidity across the electricity value chain, and further strengthens the financial foundation needed to attract long-term private investment in Nigeria’s power sector.
“NigeriaBy participating, you are not simply purchasing a financial instrument. You are investing in a reform program designed to restore payments discipline, strengthen industry cash flows, attract private capital and accelerate Nigeria’s economic transformation.
“Ultimately, however, this program is not just about balance sheets or capital markets.
“It’s about the student who gains another hour to study because electricity is reliable. It’s about the small business owner who no longer depends on expensive diesel to stay open. It’s about manufacturers whose competitiveness improves because energy becomes more reliable and affordable.
“That’s why this program is much more than a financial transaction: it’s a development mandate.
He further stated that today’s Investor Forum represents an opportunity to hear directly from the team that designed and implemented this program, to understand the structure of the Series II issuance, and to engage openly on both the opportunities and the collateral embedded within it.
Post views:
135
