Nigeria’s electricity sector reform programme gained momentum in January 2026 with the successful issuance of a ₦501 billion bond, a move that power generation companies say reflects renewed investor confidence in government-led efforts to stabilize the industry, Power Generation Companies (GenCos) have said.
The bond proceeds are tied to the Presidential Power Sector Financial Reforms Programme (PPSFRP), an initiative launched to confront the country’s ₦3.3 trillion electricity debt burden. The programme is designed to restructure liabilities, strengthen the financial health of generation companies and gas suppliers, and restore confidence in the sector’s long-term viability.
The government introduced PPSFRP to address entrenched challenges such as unpaid debts, ageing infrastructure, chronic under-investment, and poor service delivery. Years of accumulated liabilities had weakened the financial standing of GenCos and gas suppliers, reducing available generation capacity and slowing progress toward reliable electricity supply for households 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.
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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.
Reacting on behalf of the GenCos, Managing Director of First Independent Power Limited, Mr. 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 ₦501 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.