By Boluwatife Oshadiya | April 8, 2026
Key Points
- Power firms endorse ₦501 billion bond under sector reform programme
- Initiative targets ₦3.3 trillion electricity sector debt
- Investors’ strong subscription signals rising confidence
Main Story
Nigeria’s power generation companies (GenCos) have endorsed the Federal Government’s ₦501 billion bond issuance, describing it as a major step toward restoring financial stability in the electricity sector.
The bond, raised in January 2026 under the Presidential Power Sector Financial Reforms Programme (PPSFRP), aims to address a ₦3.3 trillion debt burden that has constrained operations across the power value chain.
According to a statement issued in Lagos by Seyi Sobogun, Managing Director of First Independent Power Limited, the successful fundraising reflects renewed investor confidence in the reform agenda of President Bola Ahmed Tinubu’s administration.
The programme targets longstanding structural issues including unpaid invoices, underinvestment, ageing infrastructure, and weak service delivery, all of which have reduced generation capacity and strained relationships between GenCos and gas suppliers.
The Federal Government confirmed that 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 Limited.
What’s Being Said
“The January 2026 bond issuance, which was fully subscribed, is a strong indicator of market confidence in the programme’s trajectory,” said Seyi Sobogun, Managing Director, First Independent Power Limited.
“Addressing legacy debts is critical to improving system performance and restoring sector stability,” he added.
What’s Next
- Additional bond issuances expected as government expands the reform programme
- Implementation of settlement agreements across 15 power plants to continue
- Stakeholders to monitor impact on generation capacity and electricity supply
The Bottom Line:
The successful bond issuance signals a turning point for Nigeria’s power sector reforms, but sustained execution—not funding alone—will determine whether the programme delivers reliable electricity and long-term sector viability.
 have endorsed the Federal Government’s ₦501 billion bond issuance, describing...){kind=link}