The Nigerian Presidency reports that current power sector initiatives are successfully shifting long-standing debts into viable investment avenues. Olu Verheijen, the Special Adviser to the President on Energy, shared these developments during the Investor Forum for the Presidential Power Sector Financial Reforms Programme Series II Bond Issuance in Abuja.
Verheijen noted that the administration is systematically removing the fiscal imbalances that previously hampered the electricity industry. According to her, the government is prioritizing tangible results over mere promises, proving its reliability through the successful completion of the Series I phase. Under this initial stage, the government disbursed approximately N501 billion—comprising N300 billion in cash and N201 billion in bonds—to address verified debts, including payments to eight generation companies overseeing 17 plants. The prompt fulfillment of these obligations, such as the N63.5 billion coupon payment on July 14, has reinforced market trust.
The official emphasized that credibility is the foundation of bankability. By maintaining policy consistency and honoring contracts, the government has created a more predictable environment for private capital. Increased liquidity from these reforms has already enabled generation firms to settle debts with gas suppliers and contractors. Moving forward, the Series II bond issuance aims to expand on this progress, settling further legacy obligations and creating a robust financial framework to invite long-term private sector participation. This shift is expected to improve power distribution, increase economic output, and ultimately provide better energy access for the public.
