By Obinna Uballa
Peter Obi, former Labour Party presidential candidate, has raised fresh concerns over the Federal Government’s repeated approvals of trillions of naira to settle debts in Nigeria’s power sector, questioning the transparency and effectiveness of the interventions.
Obi’s reaction follows the controversy surrounding a recent announcement by the Presidency regarding the settlement of ₦3.3 trillion in legacy power sector debts.
The New Diplomat had reported that President Bola Tinubu reportedly approved a plan to settle ₦3.3 trillion in outstanding liabilities in the power sector under the Presidential Power Sector Financial Reforms Programme.
According to the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the repayment plan followed a review of debts accumulated in the sector between February 2015 and March 2025. He stated that the amount had been agreed upon as a “full and final settlement” aimed at stabilising electricity generation and restoring investor confidence.
Onanuga also disclosed that 15 power plants had already signed settlement agreements valued at ₦2.3 trillion, while the Federal Government had raised about ₦501 billion to fund the payments, with ₦223 billion reportedly disbursed so far.
However, the announcement triggered debate after several Nigerians recalled that the same ₦3.3 trillion debt settlement had earlier been announced in May 2024 by the Minister of Power, Adebayo Adelabu, raising questions about whether the latest approval represents a new intervention or a continuation of the earlier plan.
Reacting to the development in a post on his official X handle on Tuesday, Obi said the repeated approvals raise serious concerns about accountability and fiscal management.
“Let us reflect, sincerely and without sentiment,” Obi wrote.
He pointed out that on May 17, 2024, the Federal Government had approved ₦3.3 trillion for the settlement of power sector liabilities, while another ₦4 trillion bond was approved on July 25, 2024, for similar obligations.
“This raises a fundamental question: were the previous approvals mere announcements without execution?” he asked.
Obi expressed concern that despite these interventions, electricity supply across the country has not significantly improved.
He recalled that President Bola Tinubu had promised during the 2023 presidential campaign that 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 electricity bills.
The former Anambra State governor criticised what he described as a pattern of policy pronouncements without measurable outcomes.
“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress,” he said.
Obi also linked the growing debts in the power sector to successive administrations of the All Progressives Congress between 2015 and 2025, arguing that the situation raises questions about accountability and transparency in public financial management.
He further questioned why government institutions, including the Presidential Villa, had not settled their electricity obligations despite yearly budgetary allocations.
“Year after year, budgets were made and funds appropriated. Why then were these obligations not settled when due?” he asked.
The former presidential candidate posed several questions regarding the management of the power sector debt, including how the liabilities accumulated, the actual total debt in the sector, and which portions should be borne by operators due to inefficiency.
He also sought clarification on whether the latest ₦3.3 trillion approval announced on April 6, 2026, is the same as the one approved in May 2024 and how it relates to the ₦4 trillion bond approved in July 2024.
Obi called on the Federal Government to prioritise transparency and structural reforms in addressing the long-standing challenges in the electricity sector.
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms,” he said.
He warned that without decisive action, the country could remain stuck in a cycle of mounting debts and poor electricity supply.
“Until we do so, we will remain trapped in a cycle of debt and darkness,” Obi added.
