Power Generation Companies (GenCos) have said the N501 billion raised through a bond issuance in January underscores growing investor confidence in the Federal Government’s Presidential Power Sector Financial Reforms Programme (PPSFRP).

The GenCos noted that the reform programme is designed to address the sector’s N3.3 trillion debt burden, which has long constrained operational efficiency and workforce stability across the electricity value chain.

Mr. Seyi Sobogun, Managing Director of First Independent Power Ltd., disclosed this in a statement issued on Tuesday in Lagos on behalf of the GenCos.

The Federal Government introduced the programme to tackle entrenched structural challenges in the power sector, including mounting unpaid debts, ageing infrastructure, under-investment, and poor service delivery—factors that have also impacted workforce productivity and industry sustainability.

According to the government, the accumulation of liabilities weakened GenCos and gas suppliers, reduced available generation capacity, and slowed progress towards 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,” the statement said.

As part of the initiative, the government confirmed 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 Ltd.

Reacting on behalf of the GenCos, Sobogun described the development as a critical step towards restoring financial stability and operational confidence within 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 several years due to accumulated unpaid obligations across the electricity value chain.

“Addressing these legacy issues is critical to improving overall system performance,” he added.

Sobogun confirmed the participation of GenCos in the programme and the execution of the necessary settlement agreements, expressing optimism about 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 fully subscribed and raised N501 billion, is a particularly strong indicator of market confidence in the programme’s trajectory.

“We look forward to the outcome of subsequent planned issuances as the programme advances.”

He reaffirmed the commitment of GenCos to collaborate with stakeholders to ensure the programme’s success and improve electricity supply nationwide.

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