GenCos applaud Tinubu’s move to clear ₦3.3trn electricity debt

The Managing Director of First Independent Power Limited, Seyi Sobogun, has praised the federal government for raising ₦501 billion through a bond in January 2026.

He said this shows that investors are confident in the government’s plan to fix Nigeria’s power sector problems.

The programme, known as the Presidential Power Sector Financial Reforms Programme (PPSFRP), was created to solve major issues in the electricity sector. These include huge unpaid debts, old infrastructure, lack of investment, and poor power supply.

Over the years, these problems have weakened power generation companies (GenCos) and gas suppliers. This has reduced electricity production and made it difficult to provide stable power to homes and businesses.

To address this, the federal government, led by President Bola Ahmed Tinubu, introduced a Power Sector Bond Programme. The goal is to pay off long-standing debts and improve the entire power sector.

The government has already reached agreements to settle debts with 15 power companies. These include Egbin Power Plc, Geregu Power Plc, Niger Delta Power Holding Company, Ibom Power Company, and First Independent Power Limited.
Sobogun described the progress as an important step toward improving the sector.

He said the industry has struggled for years because of unpaid debts across the electricity value chain, and solving these issues is key to better performance.

He also confirmed that power generation companies are taking part in the programme and have signed the necessary agreements.

According to him, the success of the ₦501 billion bond, which was fully subscribed, shows strong market confidence in the plan. He added that more bond issuances are expected as the programme continues.

Sobogun assured that GenCos are ready to work with all stakeholders to ensure the programme succeeds and to help improve electricity supply across Nigeria.