Lagos: Power Generation Companies (GenCos) say the successful N501 billion bond issuance in January signals rising investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme (PPSFRP).
The GenCos said the reform programme targets Nigeria’s N3.3 trillion electricity sector debt.
Mr Seyi Sobogun, Managing Director of First Independent Power Ltd., disclosed this in a statement on Tuesday in Lagos on behalf of the GenCos.
The Federal Government introduced the programme to address long-standing power sector challenges, including unpaid debts, ageing infrastructure, under-investment, and poor service.
The government said years of accumulated liabilities placed financial strain on GenCos and gas suppliers, reducing generation capacity and delaying the goal of delivering 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 reached settlement agreements with 15 power plants, including Egbin Power Plc, Geregu Power Plc, Niger Delta Power Holding Company, Ibom Power Company, and First Independent Power Limited.
Sobogun described the development as a critical step toward restoring stability in the sector by addressing operational inefficiencies and promoting a reliable electricity supply.
“We see the implementation of the Presidential Power Sector Financial Reforms Programme as key to restoring stability and sustainability in Nigeria’s power sector,” he said.
Sobogun noted the industry had operated under severe financial strain for years due to accumulated unpaid obligations across the electricity value chain.
“Addressing these legacy issues is critical to improving overall system performance,” he added.
He confirmed GenCos’ participation in the programme and completion of settlement agreements, noting this has enabled smoother transactions and improved overall project coordination. He expressed optimism about progress so far.
“The progress so far is encouraging and shows real momentum rebuilding industry confidence,” he said.
Highlighting the significance, Sobogun added: “The January 2026 fully subscribed bond, raising N501 billion, strongly indicates market confidence in the programme’s trajectory.”
“We look forward to the outcome of subsequent planned issuances as the programme advances.”
He reaffirmed GenCos’ commitment to work with stakeholders to ensure the programme’s success and improve electricity supply nationwide.
“We remain committed to supporting the programme’s implementation and to contributing to a stronger, more reliable power sector for Nigeria,” he said.