Special Adviser to the President Bola Tinubu on Energy, Olu Arowolo Verheijen on Tuesday said the Federal Government has met it’s financial obligations to power companies under a settlement agreement.
Speaking at the Investor Forum for the Presidential Power Sector Financial Reforms Programme (PPSFRP) – Series I, she said President Bola Ahmed Tinubu’s administration has demonstrated beyond doubt its commitment to making a clean break from the fiscal dysfunction that once defined Nigeria’s power sector.
She 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.
“In February 2026, the Federal Government deployed approximately ₦501 billion, N300 billion in cash and roughly ₦201 billion through non-cash bond instruments, addressing approximately 22 percent of the settlement obligations under executed Settlement Agreements, with the balance to be covered through Series II and subsequent issuances.
“To date, ₦333.12 billion has been settled to the eight participating generation companies, covering seventeen power plants that have executed participation agreements.
“We met our obligation on schedule. The first Series I coupon about ₦63.5 billion was paid in full on 14 July 2026.
“That liquidity, if sustained, will strengthen the entire electricity value chain, improve operational performance, and restore confidence across the sector. That is precisely what the Presidential Power Sector Financial Reforms Programme was established to achieve under the Renewed Hope Agenda, she noted.
She said that bankability does not begin in financial markets. It begins with governments that honour contracts, meet obligations, and create predictable rules. Capital follows credibility. That principle has guided every stage of this Programme.
According to her that credibility is already translating into tangible improvements across the sector. Participating generation companies are meeting obligations to gas suppliers, lenders and operations and maintenance contractors that had previously gone unmet. Strong investor participation in Series I was therefore no coincidence. It reflected growing confidence in both this Programme and Nigeria’s broader reform agenda. We are grateful to every institution that placed that confidence in us.
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.
“NigeriaBy 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.
“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. It is about the manufacturers whose competitiveness improves because power becomes more dependable and affordable.
“That is why this Programme is far more than a financial transaction. It is a development mandate.
She further said that today’s Investor Forum is an opportunity to hear directly from the team that designed and implemented this Programme, to understand the structure of the Series II issuance, and to engage openly on both the opportunities and the safeguards embedded within it.
