Mkpoikana Udoma
Port Harcourt — Fresh concerns have emerged over Nigeria’s power sector financing as former presidential candidate, Peter Obi, questioned the Federal Government’s repeated approvals of trillions of naira to settle electricity sector debts without visible improvements in supply.
In a statement, Obi cited the recent approval of N3.3 trillion by President Bola Ahmed Tinubu as a “full and final” settlement of power sector liabilities, noting that similar approvals had been made previously without measurable impact.
“On May 17, 2024, N3.3 trillion was approved for the same purpose. On July 25, 2024, another N4 trillion bond was approved to settle similar debts,” he said, raising concerns about policy execution.
“This raises a fundamental question: were the previous approvals mere announcements without execution?” Obi asked.
He warned that the recurring financial interventions, without corresponding improvements in electricity supply, signal deeper structural and governance challenges within the sector.
“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress,” he stated.
Obi further highlighted the deteriorating state of power supply, noting that generation remains weak despite increasing tariffs, and warned that Nigeria risks remaining trapped in a cycle of “debt and darkness.”
The former Anambra governor also questioned the transparency of the debt profile, asking: “How did the debt accrue? What is the actual total debt in the power sector? Which components are due to operators’ inefficiency?”
He raised additional concerns over funding sources for the new approval, suggesting the possibility of increased borrowing.
“And from what source will this new payment be made? Are we resorting once more to borrowing to service inefficiencies?” he queried.
Obi also pointed to government institutions as part of the problem, noting that public sector entities, including the Presidential Villa, owe a significant portion of electricity debts.
Calling for urgent reforms, he stressed the need for accountability and transparency in managing the sector.
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms,” he said.
The latest intervention by President Bola Tinubu underscores ongoing fiscal pressures in Nigeria’s power sector, which has struggled with liquidity challenges, legacy debts, and weak infrastructure despite multiple government bailouts.
