Peter Obi, a former presidential candidate of the Labour Party (LP), has faulted the federal government’s recent approval of N3.3 trillion to settle debts in Nigeria’s power sector, questioning the rationale behind the move, news.ng reports.
Obi, in a post on X on Tuesday afternoon, noted that the recent approval would be the second, yet there has been no improvement in the power sector.
“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 stated.
Obi recalled that on May 17, 2024, the federal government approved the sum of N3.3 trillion, and a N4 trillion bond on July 25, 2024, for similar purposes.
In response, the former Governor of Anambra State raised doubts about the implementation.
“This raises a fundamental question: were the previous approvals mere announcements without execution?” Obi queried.
Obi criticised President Bola Ahmed Tinubu for failing to fulfil his campaign promise in 2023 to provide stable electricity, stating that the power situation is worse than ever.
“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,” Obi said.
He condemned the recycling of policy declarations without the political will to implement such policies.
While most of the debts were incurred under the same administration headed by the All Progressives Congress (APC), Obi blamed the political party for lacking financial discipline.
“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress.
“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 stated.
Obi queried that while government agencies were fully aware of their indebtedness to power companies, what happened to the annual budgetary allocations to ministries, which ought to have been used to settle the debts.
He called for a transparency- and reform-driven approach, in line with best practices, aimed at addressing the crisis facing the power sector.
“Why then were these obligations not settled when due? And from what source will this new payment be made? Are we resorting once more to borrowing to service inefficiencies?
“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms,” he said.
