Former Anambra State Governor and Labour Party presidential candidate, Peter Obi, has raised concerns over the Federal Government’s latest approval of ₦3.3 trillion to settle debts in Nigeria’s power sector, questioning the transparency and effectiveness of previous similar approvals.
In a post shared on his X account on Monday, Obi urged Nigerians to reflect carefully on the development, noting that the latest approval by President Bola Ahmed Tinubu appeared to mirror earlier financial interventions that had yet to produce visible improvements in electricity supply.
According to Obi, the Federal Government had previously approved ₦3.3 trillion for power sector debt payments on May 17, 2024, followed by another approval of a ₦4 trillion bond on July 25, 2024, aimed at settling similar liabilities.
He questioned whether those earlier approvals were actually implemented or merely announced without execution.
“This raises a fundamental question: were the previous approvals mere announcements without execution?” Obi asked.
The former presidential candidate lamented that Nigeria’s electricity situation has continued to deteriorate despite repeated financial interventions in the sector.
Obi recalled that during the 2023 presidential campaign, Tinubu had promised Nigerians that if he failed to deliver stable electricity, voters should not re-elect him. He argued that the current power supply situation suggests the country is moving in the opposite direction.
According to him, power supply has worsened in recent times, adding that discussions have even emerged about disconnecting the Presidential Villa from the national electricity grid.
He described the repeated announcements of large financial approvals for the power sector as troubling, stressing that Nigerians deserve clarity on how the funds are being used.
“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress,” Obi said.
The former governor also noted that many of the debts being settled accumulated under successive administrations of the All Progressives Congress between 2015 and 2025, raising broader concerns about accountability in public financial management.
Obi further questioned why government institutions and agencies, including the Presidential Villa, reportedly owe a significant portion of the debts.
According to him, since funds had been appropriated in previous budgets, it remained unclear why those obligations were not settled when due.
He also raised questions about the source of funding for the new payment plan and whether the government might again resort to borrowing.
Obi listed several issues he believes require clarification, including how the debts accumulated, the actual total debt owed in the power sector, and whether part of the liabilities resulted from inefficiencies by private operators that should be borne by them rather than taxpayers.
He also asked who the real beneficiaries of the repeated payments were and how the latest ₦3.3 trillion approval relates to the previous approvals made in 2024.
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms,” Obi stated.
However, the Presidency defended the decision, saying the approval forms part of a broader plan to stabilise the power sector and restore confidence among investors and operators.
In a statement issued by presidential spokesman, Bayo Onanuga, the government said Tinubu had approved a structured payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme.
According to the statement, the debts accumulated between February 2015 and March 2025 and were verified before the government agreed on ₦3.3 trillion as a full and final settlement.
The Presidency explained that implementation of the repayment plan had already begun, with 15 power plants signing settlement agreements worth ₦2.3 trillion.
It added that the Federal Government had already raised ₦501 billion to fund the payments, out of which ₦223 billion had been disbursed, while additional payments were underway.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme was designed to ensure that key players across the electricity value chain are paid, including gas suppliers and power generation companies.
She noted that settling the debts would help stabilise electricity generation and improve reliability of supply across the country.
According to her, the initiative is also linked to broader reforms in the power sector, including improvements in metering and service-based tariffs that connect electricity pricing to the quality of service received by consumers.
The government further stated that priority would be given to ensuring reliable electricity supply for businesses, industries and small enterprises in order to support economic growth and job creation.
Tinubu also commended stakeholders who supported the efforts to resolve long-standing financial challenges in the power sector and confirmed that the next phase of the programme would commence within the current quarter.
Despite the assurances from the government, Obi insisted that Nigerians deserve clear answers and measurable results.
He warned that without discipline, accountability and decisive reforms, the country could remain trapped in what he described as a recurring “cycle of debt and darkness.”
