GenCo backs FG’s N3.3tn power debt settlement plan

First Independent Power Limited has confirmed its support for the Federal Government’s N3.3tn power sector debt settlement, describing the Presidential Power Sector Financial Reforms Programme as a key step toward restoring stability and confidence in Nigeria’s electricity sector.

In a statement issued on Tuesday, the company said it had joined the programme and executed the necessary settlement agreements.

“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,” the Chief Executive Officer of First Independent Power Limited, Seyi Sobogun, said.

Sobogun also highlighted the success of the January 2026 bond issuance, which raised N501bn and was fully subscribed.

“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, and we look forward to the outcome of the subsequent planned issuances as the programme advances,” he added.

The Presidential Power Sector Financial Reforms Programme follows President Bola Tinubu’s approval of a N3.3tn payment plan to settle legacy debts accumulated between February 2015 and March 2025. According to a release on Sunday, implementation had begun, with 15 power plants signing settlement agreements totalling N2.3tn. The Federal Government said it had already raised N501bn to fund these payments. Out of the amount, N223bn was said to have been disbursed, with further payments underway.

The programme aims to stabilise power generation and improve electricity reliability across the country.

“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,” the Special Adviser to President Tinubu on Energy, Olu Arowolo-Verheijen, stated.

First Independent Power pledged continued collaboration with all stakeholders, saying, “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.”