Peter Obi, former Labour Party presidential candidate, has questioned the Federal Government’s latest approval of ₦3.3 trillion to settle liabilities in Nigeria’s power sector, raising concerns over transparency and the impact of previous financial interventions.
Obi’s reaction follows renewed debate over the government’s announcement of a plan to clear long-standing debts in the electricity industry.
TAT News had reported that President Bola Tinubu approved a payment plan to settle ₦3.3 trillion in outstanding power sector obligations under the Presidential Power Sector Financial Reforms Programme.
According to the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the plan followed a final review of debts accumulated in the sector between February 2015 and March 2025. He explained that the figure had been agreed upon as a “full and final settlement” to stabilise electricity generation and strengthen the power value chain.
Onanuga also stated that 15 power plants had already signed settlement agreements valued at about ₦2.3 trillion, while the Federal Government had raised ₦501 billion to begin implementation of the programme. He added that ₦223 billion had been disbursed so far, with additional payments expected.
Despite the assurances, the announcement has sparked controversy, with critics pointing out that a similar ₦3.3 trillion debt settlement had earlier been announced in May 2024 by the Minister of Power, Adebayo Adelabu. The development has raised questions about whether the latest approval represents a fresh intervention or a repetition of an earlier commitment.
Reacting in a post on his official X handle on Tuesday, Obi said the repeated approvals call for serious scrutiny.
“Let us reflect, sincerely and without sentiment,” he wrote.
The former Anambra State governor recalled that the Federal Government approved ₦3.3 trillion for the same purpose on May 17, 2024, and later approved another ₦4 trillion bond on July 25, 2024, to address similar power sector liabilities.
“This raises a fundamental question: were the previous approvals mere announcements without execution?” he asked.
Obi expressed concern that despite the large financial commitments made to the sector, electricity supply has not improved significantly.
He also referenced a campaign promise made by President Bola Tinubu during the 2023 election, in which the President reportedly said Nigerians should not re-elect him if he failed to deliver stable electricity.
“Today, the reality is that power supply has worsened,” Obi said, citing reports that even the Presidential Villa could face disconnection from the national grid over unpaid electricity bills.
The former presidential candidate criticised what he described as a pattern of policy announcements without measurable results.
“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress,” he stated.
Obi also linked the mounting debts in the electricity sector to administrations of the All Progressives Congress between 2015 and 2025, saying the situation raises serious questions about accountability and fiscal discipline.
He further questioned why government institutions, including the Presidential Villa, had not settled their electricity bills despite yearly budgetary allocations.
“Year after year, budgets were made and funds appropriated. Why then were these obligations not settled when due?” he asked.
Obi also sought clarity on several issues surrounding the power sector debt, including how the liabilities accumulated, the total amount owed, and what portion should be attributed to inefficiencies by operators.
He additionally asked whether the ₦3.3 trillion approval announced on April 6, 2026, is the same as the one earlier approved in May 2024 and how it relates to the ₦4 trillion bond approved in July 2024.
Calling for reforms, Obi urged the government to adopt a more transparent and decisive approach in addressing the country’s electricity challenges.
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms,” he said.
He warned that without meaningful action, the country could remain caught in a cycle of mounting debts and persistent electricity shortages.
“Until we do so, we will remain trapped in a cycle of debt and darkness,” Obi added.
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