Power sector spending under fire as Obi queries repeated trillion-naira approvals

Former presidential candidate of the Labour Party (LP), Peter Obi, has raised concerns over repeated multi-trillion-naira approvals in Nigeria’s power sector, calling for greater transparency and accountability in the management of public funds.

In a post shared on his X handle on Tuesday, Obi questioned what he described as recurring financial interventions for the same liabilities, despite little or no visible improvement in electricity supply across the country.

He urged Nigerians to critically examine the pattern of policy decisions in the sector, noting that the federal government had recently approved N3.3 trillion as a “full and final” settlement for power sector debts.

According to him, similar approvals had been made previously, including N3.3 trillion in May 2024 and a further N4 trillion bond in July 2024, all aimed at addressing the same obligations.

Obi questioned whether earlier approvals were properly implemented, asking whether they were merely announcements without execution.

He also referenced campaign-era promises made by the current administration, including a pledge to ensure stable electricity supply, noting that the situation appears to have worsened instead of improving.

The former governor further pointed to reports suggesting discussions around disconnecting the Presidential Villa from the national grid, describing it as a reflection of deeper systemic challenges.

Obi stressed that successive policy announcements have not translated into measurable results, arguing that Nigeria continues to struggle with persistent power shortages despite massive financial commitments.

He also raised concerns about accountability in the accumulation of power sector debts, stating that many obligations were built up over multiple administrations between 2015 and 2025.

According to him, government ministries and agencies, including the Presidential Villa, account for a significant portion of the debts, raising questions about why such obligations were not settled when funds were budgeted.

Obi further queried the funding source of the latest approval, asking whether additional borrowing would be required to finance the settlement.

He also posed broader questions about the structure of the power sector debt, including how it accumulated, the total outstanding figure, and the extent to which inefficiencies by operators contributed to the liabilities.

He asked whether the newly approved N3.3 trillion is separate from or related to earlier approvals made in 2024, including the N3.3 trillion and N4 trillion interventions previously announced.

Obi concluded by urging a shift away from repeated policy announcements, calling instead for meaningful reforms in 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.