Obi Condemns Federal Govy’s ₦3.3trn Power Debt Approval

By Praise Chinecherem

Presidential hopeful of the African Democratic Congress, Peter Obi, has raised concerns over 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 on Tuesday, Obi noted that President Bola Tinubu had approved ₦3.3 trillion as a “full and final” settlement of power sector liabilities.

He however pointed out that similar approvals had been made in the past without clear evidence of execution or impact.

“₦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 said.

Obi questioned whether these approvals were merely announcements, noting that Nigeria’s electricity supply has continued to deteriorate despite repeated financial commitments.

He 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.

While attributing much of the accumulated debt to successive APC administrations between 2015 and 2025, Obi raised 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.