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

The Managing Director of First Independent Power Limited, Seyi Sobogun, has said the successful raising of N501bn through a bond issuance in January 2026 signals growing investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme aimed at addressing Nigeria’s N3.3tn electricity sector debt.

The Federal Government introduced the programme to tackle persistent structural challenges in the power sector, including mounting unpaid debts, ageing infrastructure, underinvestment, and poor service delivery.

It noted that years of accumulated liabilities had weakened generation companies and gas suppliers, reduced available generation capacity, and hindered efforts to provide reliable electricity to households and businesses.

“In response, the Federal Government, under the leadership of President Bola Ahmed Tinubu, launched the Power Sector Bond Programme to clear verified legacy debts and strengthen the entire sector,” it stated.

As part of the initiative, the government disclosed 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, Sobogun described it as a critical step towards 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.

He noted that the industry had operated under severe financial strain for years due to accumulated unpaid obligations across the electricity value chain, stressing that addressing these legacy issues was key to improving overall system performance.

Sobogun confirmed the participation of generation companies in the programme and the execution of settlement agreements, expressing optimism over the progress recorded so far.

“The progress recorded to date is encouraging and reflects tangible momentum that is beginning to rebuild confidence across the industry,” he said.

He described the January 2026 bond issuance, which was fully subscribed and raised N501bn, as a strong indicator of market confidence in the programme’s trajectory.

Nigeria’s power sector reform gains traction as investor confidence rises following a fully subscribed N501bn bond to address longstanding electricity market debts.