Dare Babalola
Former presidential candidate and Labour Party leader, Peter Obi, has questioned the Federal Government’s repeated approval of multi-trillion naira interventions in the power sector.
He described the development as a reflection of deeper structural and governance challenges.
In a detailed post shared on his X handle on Tuesday, Obi expressed concern over what he described as recurring financial approvals for the same liabilities without visible progress in electricity supply across the country.
“Let us reflect, sincerely and without sentiment,” he began, urging Nigerians to examine the pattern of policy decisions surrounding the power sector.
He noted that in recent days, the President reportedly approved ₦3.3 trillion as a “full and final” settlement for debts in the sector, pointing out that similar approvals had been made previously without clear evidence of resolution.
“On May 17, 2024, ₦3.3 trillion was approved for the same purpose. On July 25, 2024, another ₦4 trillion bond was approved to settle similar debts. There have also been other approvals in between, all targeted at addressing the same power sector liabilities,” he stated.
Obi questioned whether earlier approvals were effectively implemented, asking, “This raises a fundamental question: were the previous approvals mere announcements without execution?”
Highlighting the continued instability in electricity supply, he referenced campaign-era commitments made by the current administration. According to him, the worsening state of power generation and distribution contradicts earlier assurances made to Nigerians.
“During the 2023 campaign, President Bola Ahmed Tinubu made a clear promise: that if he failed to deliver stable electricity, Nigerians should not re-elect him,” he said.
Obi added that the situation has deteriorated to the point where discussions have emerged about disconnecting the Presidential Villa from the national grid, describing it as indicative of broader systemic failure.
The Presidential Villa, also known as Aso Rock Presidential Villa, serves as the official residence and workplace of the Nigerian President.
He further argued that recurring policy announcements have not translated into measurable outcomes, stating that “each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress.”
The former Anambra State governor also raised concerns about accountability and transparency in the accumulation of power sector debts, noting that many of the liabilities were built up over successive administrations between 2015 and 2025.
“These debts were largely accumulated under successive administrations of the All Progressives Congress between 2015 and 2025. This raises serious concerns about accountability, transparency, and effectiveness in public financial management,” he said.
Obi questioned the rationale behind the persistent accumulation of obligations, particularly those owed by government institutions, including the Presidential Villa.
“It is important to note that government institutions and agencies, including the Presidential Villa, owe a significant portion of these debts. Year after year, budgets were made and funds appropriated. Why then were these obligations not settled when due?” he asked.
He also sought clarity on the funding structure of the latest approval, raising concerns about whether additional borrowing would be required.
“And from what source will this new payment be made? Are we resorting once more to borrowing to service inefficiencies?” he queried.
Obi further posed several unanswered questions regarding the power sector’s financial structure, including the total size of the debt, the origins of the liabilities, and the extent to which inefficiencies by operators may have contributed.
“Key questions remain unanswered: How did the debt accrue? What is the actual total debt in the power sector? Which components of the debts are due to operators’ inefficiency and should be borne by them? Why have previous approvals not translated into tangible improvements?” he asked.
He also queried whether the newly approved ₦3.3 trillion is separate from or related to earlier approvals, including the ₦3.3 trillion sanctioned in 2024 and the ₦4 trillion bond approved later that year.
“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 2024?” he wrote.
Concluding his remarks, Obi urged a shift away from what he described as repetitive policy announcements toward meaningful reform of the electricity sector.
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms. Until we do so, we will remain trapped in a cycle of debt and darkness,” he stated.
