Peter Obi, former Anambra State Governor, has raised concerns over the Federal Government’s latest approval of N3.3 trillion to settle debts in Nigeria’s power sector, questioning the transparency and execution of similar past interventions.
Obi, who spoke via a post on X on April 7, 2026, challenged the administration of President Bola Ahmed Tinubu, noting that this is not the first time such approvals have been announced.
According to him, previous debt settlement plans, including a N3.3 trillion approval in May 2024 and a N4 trillion bond in July 2024, were also aimed at addressing the same liabilities.
“This raises a fundamental question: were the previous approvals mere announcements without execution?” Obi queried.
He urged the government to move beyond what he described as repeated declarations and instead prioritise transparency, accountability, and structural reforms in tackling the country’s persistent power sector challenges.
The latest approval follows reports that the Federal Government sanctioned a N3.3 trillion payment plan under its power sector reform programme to address longstanding debts owed to generation companies (GenCos) and other stakeholders.
However, the sector continues to grapple with a mounting debt profile, estimated at over N6.8 trillion, which has disrupted gas supply and constrained electricity generation.
Earlier interventions, including a N4 trillion government-backed bond and other settlement plans, have yet to fully resolve the liquidity crisis in the industry.
Obi also questioned the source of funding for the new settlement, raising concerns about whether the government may resort to additional borrowing.
“Why were these obligations not settled when due, and how will this new payment be financed?” he asked.
He further alleged that government institutions contribute significantly to the sector’s debt burden, compounding existing inefficiencies.
Despite multiple interventions, Nigeria’s power sector continues to face instability. The national grid has recorded repeated collapses in recent years, including two incidents in January 2026 that left large parts of the country without electricity.
