The Presidency says ongoing power sector reforms are restoring investor confidence by converting legacy liabilities into bankable investment opportunities.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, said this on Tuesday in Abuja.
She spoke at the Investor Forum for the Presidential Power Sector Financial Reforms Programme Series II Bond Issuance.
Mrs Verheijen said the administration was ending fiscal distortions that had undermined Nigeria’s electricity sector for years.
She said: “Every successful capital market tells the same story: investors return where governments keep their promises.
“Today’s forum is about exactly that. President Bola Tinubu’s administration has demonstrated beyond doubt its commitment to making a clean break from fiscal dysfunction.”
She said the reforms had transformed an unsustainable financial burden into a credible and bankable investment opportunity.
Mrs Verheijen said: “We are converting yesterday’s liabilities into today’s liquidity and tomorrow’s investment capacity.
“That liquidity, if sustained, will strengthen the entire electricity value chain, improve operational performance and restore confidence across the sector.”
According to her, the administration prioritised execution before expanding the programme.
“Markets do not reward promises. They reward performance. That is why we deliberately chose execution before expansion.
“Series I delivered on its promise, proving that government can honour its obligations and restore market confidence,” she said.
Mrs Verheijen said the Federal Government deployed about N501 billion under Series I to settle verified obligations.
She said the amount comprised N300 billion in cash and N201 billion in bond instruments.
The presidential aide said N333.12 billion had been paid to eight generation companies covering 17 power plants.
She added that the first coupon payment, valued at about N63.5 billion, was redeemed on July 14.
“We met our obligation on schedule. The first Series I coupon was paid in full. In sovereign finance, trust compounds just as powerfully as interest.
“Governments that expect private capital to invest must first demonstrate that their own commitments will be honoured,” she said.
Mrs Verheijen said governments seeking private investment must establish credibility through policy consistency and respect for contractual obligations.
“Bankability does not begin in financial markets. It begins with governments that honour contracts, meet obligations and create predictable rules.
“Capital follows credibility, and that principle has guided every stage of this programme,” Mrs Verheijen said.
She said improved liquidity enabled participating generation companies to meet obligations to gas suppliers, lenders and operations contractors.
Mrs Verheijen said strong investor participation in Series I reflected growing confidence in the programme and Nigeria’s broader reform agenda.
She said Series II would deepen liquidity across the electricity value chain and settle additional verified legacy obligations.
The initiative would also strengthen the financial foundation required to attract long-term private investment into Nigeria’s power sector.
Mrs Verheijen said: “Series I proved the model. Series II scales it.
“This issuance extends the settlement of verified legacy obligations, deepens liquidity throughout the electricity value chain and strengthens the foundations for private investment.”
She urged investors to view the bond as more than a financial instrument.
“By participating, you are not simply purchasing a financial instrument. You are investing in a reform programme designed to restore payment discipline,” she said.
Mrs Verheijen said the programme would strengthen sector cash flows, attract private capital and accelerate Nigeria’s economic transformation.
She said the reforms would ultimately improve electricity supply, boost productivity and enhance Nigerians’ quality of life.
“Nigeria’s power sector is changing. The reforms are real. The commitments are being honoured. The opportunity is significant,” she said.