• Peter Obi questions the new Federal Government’s approval of N3.3 trillion to settle power sector debts
• Obi questions if earlier financial approvals were actually disbursed and used as intended or merely remained policy announcements without real execution
• He cautioned that without accountability, transparency, and reform, Nigeria may remain stuck in a continuous loop of borrowing and spending without solving its electricity challenges

Former Labour Party presidential candidate, Peter Obi, has questioned the Federal Government’s continued approval of massive funds to offset power sector debts, calling for transparency and measurable results.

In a statement shared on his official X account on Tuesday, April 7, Obi expressed concern over the latest approval of N3.3 trillion described as a “full and final” settlement of liabilities in the electricity sector.

He noted that similar approvals had been made in the past, yet Nigerians have seen little improvement in power supply.

“Let us reflect, sincerely and without sentiment,” he said.

Obi recalled that on May 17, 2024, the government approved N3.3 trillion for the same purpose. This was followed by another ₦4 trillion bond approval on July 25, 2024, also targeted at settling power sector debts.

“This raises a fundamental question: were the previous approvals mere announcements without execution?” he asked.

The former Anambra State governor also pointed to the worsening electricity situation across the country, referencing campaign promises made by President Bola Ahmed Tinubu.

“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.

“Today, the reality is that power supply has worsened,” he added, citing reports that even the Presidential Villa could risk disconnection from the national grid.

He criticised what he described as a recurring trend of policy announcements without tangible outcomes.

“Each time legitimate concerns are raised, what we see appears more like policy pronouncements than measurable progress,” he said.

Obi further traced the growing debt burden in the power sector to successive administrations led by the All Progressives Congress between 2015 and 2025, raising questions about fiscal discipline and accountability.

“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.

He also questioned why government institutions, including the Presidential Villa, have reportedly failed to meet their electricity payment obligations despite consistent budgetary allocations.

“Year after year, budgets were made and funds appropriated. Why then were these obligations not settled when due?” he asked.

Obi went further to demand clarity on several unresolved issues surrounding the sector’s financial structure.

“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? Who are the real beneficiaries of these repeated payments?” he queried.

He also questioned whether the newly approved N3.3 trillion is separate from or linked to previous approvals.

“Is the N3.3 trillion approved on April 6, 2026, the same as the N3.3 trillion approved in May 2024, and how does it relate to the N4 trillion bond approved in July 2024?” he asked.

Calling for a more result-driven approach, Obi urged the government to prioritise reforms over repeated financial interventions.

“Nigeria must move beyond recycled announcements and confront the power sector crisis with sincerity, transparency, and decisive reforms,” he said.

He warned that without accountability and structural change, the country risks remaining stuck in an ongoing cycle of inefficiency.

“Until we do so, we will remain trapped in a cycle of debt and darkness,” Obi stated.

Senate clears Tinubu’s $6bn loan plan to fund budget gap, ports upgrade

Meanwhile, Theradar earlier reported that the Nigerian Senate had given the green light to President Bola Tinubu’s request to secure a total of $6 billion in external loans.

The approved loan is divided into a $5 billion loan from Abu Dhabi Bank targeted at financing the budget deficit and a $1 billion facility from UK Export Finance earmarked specifically for infrastructure upgrades.

The approval was set against the backdrop of a widening fiscal gap in Nigeria’s 2025 budget.