Peter Obi has criticised the federal government’s latest approval of 3.3 trillion naira to settle legacy debts in the power sector, describing it as a repetition of previous measures without clear outcomes.

Obi said similar approvals had been made in recent years, including a 3.3 trillion naira package in May 2024 and a 4 trillion naira bond in July 2025 aimed at addressing 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.

Obi questioned whether previous commitments had been implemented. “Were the previous approvals mere announcements without execution?” he asked, adding that the debts accumulated between 2015 and 2025 under successive administrations.

He also referred to campaign statements by Bola Tinubu on improving electricity supply, saying current conditions show no significant progress.

Obi raised questions about the structure and transparency of the debts, including how they were accumulated, the total amount owed, and the extent to which inefficiencies by operators contributed to 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 said.

He said government institutions also contribute to the debt burden despite budgetary provisions, warning that further payments could rely on borrowing and deepen fiscal pressures.

The comments came after the presidency announced that President Tinubu had approved the 3.3 trillion naira plan as a “full and final settlement” of debts accumulated between February 2015 and March 2025.

Officials said implementation has begun, with 15 power generation companies signing agreements valued at 2.3 trillion naira and 223 billion naira already disbursed from 501 billion naira raised.

Nigeria’s power sector has faced persistent challenges since its partial privatisation in 2013, including liquidity constraints, infrastructure gaps and inconsistent electricity supply. (Guardian)

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