By BONIFACE AKARAH

The Federal Government has urged investors to participate in the second series of bond issuance under the Presidential Power Sector Financial Reforms Programme (PPSFRP), saying the initiative is aimed at strengthening liquidity in the electricity sector, settling legacy obligations and attracting long-term private investment.

Speaking at the Investor Forum for the Series II bond issuance, Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Tinubu administration had demonstrated its commitment to reforming the power sector through disciplined implementation of financial obligations. She said the government was “converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity,” stressing that “markets do not reward promises; they reward performance.” Verheijen added that the administration deliberately prioritised execution before expansion to build investor confidence.

“Every successful capital market tells the same story: investors return where governments keep their promises,” she said, noting that restoring credibility remained central to the government’s power sector reform agenda.

Verheijen said the first phase of the programme, launched in February 2026, deployed about ?501 billion, comprising ?300 billion in cash and about ?201 billion in non-cash bond instruments, to settle part of the verified obligations owed within the electricity value chain.

According to her, the intervention addressed about 22 per cent of settlement obligations captured under executed settlement agreements, with the outstanding balance to be covered through the Series II and subsequent bond issuances.

“Series I delivered on its promise,” she said, adding that ?333.12 billion had so far been paid to eight participating generation companies covering 17 power plants.

The presidential adviser also disclosed that the government met its obligations under the first issuance by paying the inaugural coupon of about ?63.5 billion on July 14, 2026.

“Governments that expect private capital to invest must first demonstrate that their own commitments will be honoured,” Verheijen stated, describing credibility as the foundation of bankability and investor confidence.

She said the improved liquidity had enabled participating generation companies to meet obligations to gas suppliers, lenders and operations and maintenance contractors, while the strong investor participation recorded during the first issuance reflected growing confidence in the programme and Nigeria’s broader economic reforms.

On the Series II issuance, Verheijen said the exercise would further settle verified legacy debts, strengthen cash flow across the electricity value chain and reinforce the financial base needed to attract sustained private investment into the sector.

“Series I proved the model. Series II scales it,” she said, adding that investors were supporting a reform programme designed to improve payment discipline, strengthen sector financing and drive economic growth.

Verheijen said the reforms were ultimately intended to improve electricity supply, reduce energy costs for businesses and households, and enhance Nigeria’s economic competitiveness.

She also acknowledged the contributions 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, members of the Presidential Power Sector Financial Reforms Programme Committee and other transaction advisers for their roles in implementing the initiative.