GenCos applaud N501b bond, boost confidence in power reforms
The successful raising of N501 billion through a bond issuance in January underscored growing investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme (PPSFRP), Power Generation Companies
- Our Reporters
The successful raising of N501 billion through a bond issuance in January underscored growing investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme (PPSFRP), Power Generation Companies (GenCos) have said.
The GenCos noted that the reform programme was designed to tackle Nigeria’s N3.3 trillion electricity sector debt.
Managing Director of First Independent Power Ltd, Mr. Seyi Sobogun, dropped the hint in a statement on issued in Lagos yesterday on behalf of the GenCos.
The Federal Government introduced the PPSFRP to address long-standing structural challenges in the power sector, including mounting unpaid debts, ageing infrastructure, under-investment, and poor service delivery.
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According to the government, the accumulation of liabilities over the years weakened GenCos and gas suppliers, reduced available generation capacity, and slowed progress toward delivering reliable electricity to homes and businesses.
The statement reads: “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.”
As part of the initiative, the government confirmed it had reached 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 Limited.
Reacting on behalf of the GenCos, Sobogun described the development as a critical step toward restoring stability in the sector.
“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 said.
Sobogun noted that for several years, the industry had operated under severe financial strain 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 the participation of GenCos in the programme and the execution of the necessary settlement agreements, expressing 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, Sobogun added: “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.
“We look forward to the outcome of subsequent planned issuances as the programme advances.”
He reaffirmed the commitment of GenCos to collaborate 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.
