THE Federal Government’s bond issuance to offset the first tranche of over N5 trillion in debts owed to power generation companies (GENCOs) has raised questions about power sector financing and solving legacy debt problems in Nigeria’s power sector. The Nigerian power sector was privatised in 2013 but has been enjoying subsidy interventions from the Federal Government to avoid collapse. Veheijen explained that the bond issuance was part of the Presidential Power Sector Debt Reduction Programme (PPSDRP) and had achieved full subscription, reflecting strong investor confidence in the reform agenda. Despite this progress, legacy problems in the electricity sector persist, including chronic liquidity shortfalls and unresolved liabilities. A report by The ICIR shows that the World Bank and the African Development Bank intervene in Nigeria’s power sector and have pumped in over $1.5 billion.