Presidential hopeful of the African Democratic Congress, Peter Obi, has raised concerns over the Federal Government’s repeated approvals of trillions of naira to settle debts in Nigeria’s power sector, questioning the effectiveness and transparency of such interventions.
In a statement released on April 7, 2026, Obi noted that President Bola Ahmed Tinubu had approved ₦3.3 trillion as a “full and final” settlement of power sector liabilities. He pointed out, however, that similar approvals had been made in the past without clear evidence of execution or impact.
According to Obi, ₦3.3 trillion was earlier approved on May 17, 2024, for the same purpose, followed by another ₦4 trillion bond approval on July 25, 2024, alongside other interventions aimed at addressing the sector’s mounting debts.
He questioned whether these approvals were merely announcements, noting that Nigeria’s electricity supply has continued to deteriorate despite repeated financial commitments. Obi recalled that during the 2023 election campaign, Tinubu had promised improved power supply, yet the situation has worsened, with reports even suggesting potential disconnection of the Presidential Villa from the national grid.
Obi attributed much of the accumulated debt to successive APC administrations between 2015 and 2025, raising concerns about accountability and public financial management. He further observed that government institutions, including the Presidential Villa, owe a significant portion of the liabilities.
Obi also queried why previously budgeted and appropriated funds were not used to settle these obligations when due and whether the government is resorting to additional borrowing to address the issue.
He called for clarity on several key issues, including the actual size of the power sector debt, the causes of its accumulation, and the extent to which inefficiencies among operators contributed to the liabilities. He also questioned who ultimately benefits from the repeated disbursements.
Obi urged the government to move beyond what he described as “recycled announcements” and instead pursue transparent, accountable, and decisive reforms in the power sector.
He warned that without such measures, Nigeria risks remaining trapped in a cycle of debt and inadequate electricity supply, stressing that meaningful progress will require discipline, accountability, and effective leadership.
The full statement is published below…
Let us reflect, sincerely and without sentiment.
In the past few days, the President has reportedly approved ₦3.3 trillion as a “full and final” payment for debts in the power sector. Yet, this is not the first time such approvals have been made.
On May 17, 2024, ₦3.3 trillion was approved for the same purpose. On July 25, 2024, another ₦4 trillion bond was approved to settle similar debts. There have also been other approvals in between, all targeted at addressing the same power sector liabilities.
This raises a fundamental question: were the previous approvals mere announcements without execution?
₦3.3 Trillion Again? Nigeria’s Power Crisis Without End
During the 2023 campaign, President Bola Ahmed Tinubu made a clear promise: that if he failed to deliver stable electricity, Nigerians should not re-elect him. Today, the reality is that power supply has worsened, to the extent that there are even discussions about disconnecting the Presidential Villa from the national grid.
Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress.
Now, again, we are confronted with another ₦3.3 trillion approval to settle power sector debts.
These debts were largely accumulated under successive administrations of the All Progressives Congress between 2015 and 2025. This raises serious concerns about accountability, transparency, and effectiveness in public financial management.
It is important to note that government institutions and agencies, including the Presidential Villa owe a significant portion of these debts. Year after year, budgets were made and funds appropriated. Why then were these obligations not settled when due? And from what source will this new payment be made? Are we resorting once more to borrowing to service inefficiencies?
Key questions remain unanswered: How did the debt accrue? What is the actual total debt in the power sector? Which components of the debts are due to operators’ inefficiency and should be borne by them? Why have previous approvals not translated into tangible improvements? Who are the real beneficiaries of these repeated payments?
Is the ₦3.3 trillion approved on April 6, 2026, the same as the ₦3.3 trillion approved in May 2024, and how does it relate to the ₦4 trillion bond approved in July 2024?
Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms.
Until we do so, we will remain trapped in a cycle of debt and darkness.
But with discipline, accountability, and the right leadership, a new Nigeria is still possible. -PO
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