By Seun Ibiyemi
Power Generation Companies (GenCos) have hailed the N501 billion raised through a bond issuance in January as a strong signal of growing investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme (PPSFRP).
Speaking on Tuesday in Lagos, Managing Director of First Independent Power Ltd., Mr. Seyi Sobogun emphasized that the reform programme is designed to tackle the nation’s N3.3 trillion electricity sector debt and strengthen the sector’s financial stability.
The Federal Government introduced the PPSFRP to address persistent challenges in the power industry, including mounting unpaid debts, ageing infrastructure, under-investment, and poor service delivery.
Over the years, these structural weaknesses reduced generation capacity and slowed the delivery of reliable electricity to homes and businesses.
“In response, the Federal Government under President Bola Ahmed Tinubu launched the Power Sector Bond Programme aimed at clearing verified legacy debts and reinforcing the entire sector,” the statement said.
As part of the initiative, settlement agreements have been reached covering 15 power plants, including Egbin Power Plc, Geregu Power Plc, Niger Delta Power Holding Company, Ibom Power Company, and First Independent Power Ltd.
Reacting on behalf of the GenCos, Sobogun described the development as a critical step toward restoring stability and sustainability in Nigeria’s power sector.
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He noted that addressing legacy debts is essential to improving overall system performance and rebuilding confidence across the industry.
“The January 2026 bond issuance, which was fully subscribed and raised N501 billion, is a particularly strong indicator of market confidence in the programme’s trajectory,” Sobogun said, expressing optimism over future planned issuances.
He reaffirmed the commitment of GenCos to collaborate with stakeholders to ensure the successful implementation of the programme and enhance electricity supply nationwide.
