Power Firm Backs FG’s Bond Plan in N3.3trn Debt Settlement

The managing director of First Independent Power Limited, Seyi Sobogun, has said the successful raising of N501 billion through a bond issuance in January 2026 underscores growing investor confidence in the federal government’s Presidential Power Sector Financial Reforms Programme (PPSFRP), designed to tackle Nigeria’s N3.3 trillion electricity sector debt.

The federal government had introduced the programme to address long-standing structural challenges in the power sector, including mounting unpaid debts, ageing infrastructure, under-investment, and poor service delivery.

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.

“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,” it stated.

As part of the initiative, the government confirmed that 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.

Commenting on the development managing director of First Independent Power Limited, Seyi 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 towards 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 100 per cent subscribed and raised N501 billion, is a particularly strong indicator of market confidence in the programme’s trajectory, and we look forward to the outcome of subsequent planned issuances as the programme advances.”

He reaffirmed the commitment of GenCos to collaborate with stakeholders in ensuring the programme’s success and improving electricity supply nationwide.

“We remain committed to working with all stakeholders to support the successful implementation of the programme and to contribute to a stronger, more reliable power sector for Nigeria,” he stated.