The Federal Government on Tuesday said it had met all obligations under the first tranche of its power sector debt financing programme, revealing that about N501bn had been deployed to settle part of the long-standing legacy debts owed to electricity generation companies and that the first bond coupon was paid on schedule.

The government said N333bn had so far been paid to eight participating GenCos, covering 17 power plants, under the first phase of the power sector debt settlement programme.

It added that the successful implementation of Series I of the Power Sector Multi-Instrument Issuance Programme had restored investor confidence in Nigeria’s electricity market and paved the way for the launch of a N729bn Series II bond aimed at deepening liquidity across the power value chain.

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this on Tuesday at the Investors’ Forum for the Series II Bond Issue of NBET Finance Company Plc, held in Abuja.

She said the Tinubu administration had deliberately chosen to demonstrate credibility by fulfilling every obligation made to investors before returning to the capital market to raise additional funds.

She said, “Every successful capital market tells the same story. Investors return where governments keep their promises. And today’s lecture is exactly about that. President Bola 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.

“Through bold policy decisions and disciplined execution, we are converting an unsustainable liability into a bankable, well-governed investment opportunity that the market can trust.”

Verheijen explained that the government was moving beyond simply restructuring the debts on paper, saying it had begun converting legacy liabilities into fresh liquidity to support investment across the electricity value chain.

She 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. That is precisely what the Presidential Power Sector Financial Reforms Programme was established to achieve under the Renewed Hope Agenda.”

She noted that the government’s reform agenda was being driven by credibility and concrete actions rather than promises.

“Markets do not reward promises. They reward performance. And that is why we deliberately chose execution before expansion,” she added.

Providing the specifics, Verheijen said the Federal Government deployed approximately N501bn to the debt settlement programme in February 2026.

She said, “Series I delivered on its promise. In February 2026, the Federal Government deployed approximately N501bn, N300bn in cash and N201bn through non-cash bond instruments, addressing approximately 22 per cent of the settlement obligations under executed settlement agreements, with the balance to be covered through Series II and subsequent issuances,”adding N333bn had been settled to eight participating generation companies covering 17 power plants.

Verheijen said the payment had boosted investor confidence in Nigeria’s electricity market.

The Power Sector Multi-Instrument Issuance Programme was established under the Presidential Power Sector Financial Reforms Programme to address legacy debts owed to electricity generation companies, which have constrained liquidity across the power value chain.

Under Series I, the Federal Government raised and deployed N501bn, comprising N300bn in cash and N201bn in non-cash bond instruments. The funds were used to settle approximately 22 per cent of verified obligations covered by executed settlement agreements.