Power Generation Companies (GenCos) have described the ₦501 billion raised through a bond issuance in January as a major step toward restoring stability in Nigeria’s electricity sector.
Mr Seyi Sobogun, Managing Director of First Independent Power Ltd, speaking on behalf of the GenCos, said the development reflects growing investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme (PPSFRP).
The GenCos noted that the reform programme was designed to tackle the nation’s ₦3.3 trillion electricity sector debt. The initiative was introduced to address long-standing structural challenges, including mounting unpaid debts, ageing infrastructure, under-investment, and poor service delivery.
The government said the accumulation of liabilities over the years had weakened GenCos and gas suppliers, reduced available generation capacity, and slowed progress toward providing reliable electricity to homes and businesses.
“In response, the Federal Government under the leadership of President Bola Ahmed Tinubu has launched the Power Sector Bond Programme aimed at clearing verified legacy debts and strengthening the entire sector,” the statement said.
As part of the initiative, the government confirmed settlement agreements covering 15 power plants, including Egbin Power Plc, Geregu Power Plc, Niger Delta Power Holding Company, Ibom Power Company, and First Independent Power Ltd.
Sobogun said, “We welcome the update on the implementation of the Presidential Power Sector Financial Reforms Programme as an important step toward restoring stability and sustainability in Nigeria’s power sector.”
He added that the industry had operated under severe financial strain for several years due to accumulated unpaid obligations across the electricity value chain. “Addressing these legacy issues is critical to improving overall system performance,” he said.
Confirming GenCos’ participation in the programme and the execution of settlement agreements, Sobogun expressed optimism over the progress made so far. “The progress recorded to date is encouraging and reflects tangible momentum that is beginning to rebuild confidence across the industry,” he said.
Highlighting the significance of the bond issuance, he added: “The January 2026 bond issuance, which was fully subscribed and raised ₦501 billion, is a particularly strong indicator of market confidence in the programme’s trajectory. We look forward to the outcome of subsequent planned issuances as the programme advances.”
Sobogun reaffirmed GenCos’ commitment to working with stakeholders to ensure the programme’s success and improve electricity supply nationwide. “We remain committed to working with all stakeholders to support the successful implementation of the programme and contribute to a stronger, more reliable power sector for Nigeria,” he said.
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