GenCo Endorses N3.3tn Presidential Debt Settlement to Restore Power Stability
First Independent Power Limited, a key electricity generation company, has publicly confirmed its support for the Federal Government's N3.3tn power sector debt settlement initiative. The company described the Presidential Power Sector Financial Reforms Programme as a pivotal step toward restoring stability and rebuilding confidence across Nigeria's electricity sector.
Company Participation and Settlement Agreements
In a statement released on Tuesday, First Independent Power Limited announced that it has formally joined the programme and executed all necessary settlement agreements. The Chief Executive Officer, Seyi Sobogun, verified the company's active involvement, emphasizing the progress made so far.
Sobogun stated, "We confirm our participation in the programme and the execution of the requisite settlement agreements. The progress recorded to date is encouraging and reflects tangible momentum that is beginning to rebuild confidence across the industry."
Market Confidence and Bond Issuance Success
Sobogun also highlighted the success of the January 2026 bond issuance, which raised N501bn and was fully subscribed. He noted that this achievement serves as a strong indicator of market confidence in the programme's trajectory.
"The January 2026 bond issuance, which was 100 per cent subscribed and raised N501bn, is a particularly strong indicator of market confidence in the programme's trajectory. We look forward to the outcome of the subsequent planned issuances as the programme advances," he added.
Background of the Presidential Programme
The Presidential Power Sector Financial Reforms Programme was initiated following President Bola Tinubu's approval of a N3.3tn payment plan designed to settle legacy debts accumulated between February 2015 and March 2025. According to earlier reports, implementation has already commenced, with 15 power plants signing settlement agreements totaling N2.3tn.
The Federal Government has raised N501bn to fund these payments, with N223bn already disbursed and further payments currently underway. The programme's primary objectives are to stabilize power generation and enhance electricity reliability nationwide.
Broader Impact and Stakeholder Collaboration
Olu Arowolo-Verheijen, the Special Adviser on Energy to President Tinubu, emphasized that the programme extends beyond mere debt settlement. "This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably," she stated.
First Independent Power Limited has pledged ongoing collaboration with all stakeholders, affirming its commitment to supporting the successful implementation of the programme. The company aims to contribute to a stronger and more reliable power sector for Nigeria.
