Gencos back Tinubu’s N3.3trn power plan, say reforms restoring

By Adewale Sanyaolu

Power Generation Companies (Gencos), have thrown their weight behind the Federal Government’s sweeping power sector reform drive, describing it as a decisive intervention that aligns with the recent approval of  ₦3.3 trillion electricity payment plan by President Bola Tinubu.

Speaking on behalf of the Gencos, the Chief Executive Officer of First Independent Power Limited, Seyi Sobogun, said the ongoing Presidential Power Sector Financial Reforms Programme marks a critical turning point in efforts to stabilise Nigeria’s fragile electricity market and resolve long-standing liquidity challenges.

According to the CEO, the reform programme directly complements the President’s ₦3.3 trillion payment plan, which is designed to clear legacy debts and inject much-needed liquidity into the sector’s value chain—from generation companies (GenCos) to transmission and distribution operators.

He noted that for years, Nigeria’s power sector has grappled with severe financial strain, largely due to the accumulation of unpaid obligations, tariff shortfalls, and market inefficiencies that have undermined investment and service delivery.

He explained that the settlement of legacy debts, now being addressed through the government-backed initiative, is essential to unlocking improved system performance, enhancing power supply reliability, and rebuilding investor confidence. The Gencos, he confirmed, are active participants in the programme and have executed the necessary settlement agreements, signalling industry-wide alignment with the Federal Government’s reform agenda.

He described the progress recorded so far as encouraging, noting that it reflects “tangible momentum” that is gradually restoring confidence across the electricity market.

Particularly, he highlighted the January 2026 bond issuance under the programme, which was fully subscribed and raised ₦501 billion, as a strong indicator that investors are responding positively to the reforms.

“The 100 per cent subscription of the bond demonstrates growing market confidence in the programme’s trajectory. We are optimistic about subsequent issuances as the reform process advances,” he added.