The federal government says it has paid N333 billion to eight participating electricity generation companies (GenCos), covering 17 power plants, under the first phase of the power sector debt settlement programme.
Olu Verheijen, special adviser to the president on energy,
spoke on Tuesday during the investor forum for the presidential power Sector
financial reforms programme (PPSFRP) – series II bond issuance.
“Series I delivered on its promise. 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,” she said.
“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.”
Verheijen said in sovereign finance, trust compounds just as
powerfully as interest.
She added that governments seeking to attract private
capital must first prove they will honour their own commitments.
“That is exactly what this Programme has done. 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,”
Verheijen said.
“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.”
She said the issuance broadens the settlement of verified
legacy debts, improves liquidity across the electricity value chain, and
reinforces the financial base needed to attract long-term private investment
into Nigeria’s power sector.
“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,” Verheijen said.
“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.”
On Monday, the federal government said it will issue the
second tranche of a bond valued at about N729 billion for the settlement of
verified legacy debts owed to GenCos.
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