Peter Obi has criticised the federal government’s recent approval of ₦3.3 trillion to settle legacy debts in the power sector, describing the move as a repetition of past interventions with unclear results.
Gatekeepers News reports that Obi noted that similar financial packages had been approved in recent years, including a ₦3.3 trillion facility in May 2024 and a ₦4 trillion bond in July 2025, both aimed at clearing debts owed to power generation companies and gas suppliers.
“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,” he said.
He questioned whether previous commitments were fully implemented. “Were the previous approvals mere announcements without execution?” Obi asked, noting that the liabilities accumulated between 2015 and 2025 under successive administrations.
The former Anambra governor also referenced campaign promises by Bola Tinubu on improving electricity supply, arguing that current conditions show little evidence of significant progress.
Obi further raised concerns over the transparency and structure of the debts, questioning how they were accumulated, the actual total owed, and the role of inefficiencies by operators in creating the liabilities.
“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?” he queried.
He also pointed out that government institutions contribute to the growing debt burden despite budgetary allocations, warning that additional payments may depend on borrowing and could worsen fiscal pressures.
The remarks followed an announcement by the presidency that Bola Tinubu had approved the ₦3.3 trillion plan as a “full and final settlement” of debts accumulated between February 2015 and March 2025.
According to officials, implementation is already underway, with 15 power generation companies signing agreements valued at ₦2.3 trillion, while ₦223 billion has been disbursed from ₦501 billion raised so far.
Nigeria’s power sector has continued to grapple with longstanding challenges since its partial privatisation in 2013, including liquidity constraints, infrastructure deficits, and inconsistent electricity supply.
