The recent announcement by the President Bola Tinubu approving ₦3.3 trillion as a “full and final” settlement for legacy debts in the power sector has sparked intense scrutiny, with former Labour Party Presidential Candidate Peter Obi leading the charge.
Obi raised critical questions about the transparency, execution, repetitive nature of these massive financial commitments, describing as “recycled announcements” that fail to translate into tangible improvements in electricity supply.
On April 6, 2026, the State House announced that President Tinubu had approved a ₦3.3 trillion payment plan to resolve long-standing debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
According to Olu Arowolo-Verheijen, Special Adviser on Energy to the President, the initiative aims to restore confidence across the power value chain, ensuring gas suppliers are paid and power plants remain operational.
The government noted that
implementation has already begun, with 15 power plants signing settlement agreements totaling ₦2.3 trillion, and ₦223 billion disbursed from an initial ₦501 billion raised.
However, the announcement has drawn sharp criticism from the ex-Presidential candidate, who pointed out a glaring pattern of similar, unfulfilled approvals in the recent past. In a statement released on his X account, Obi questioned whether these approvals were merely performative.
“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. On May 17, 2024, ₦3.3 trillion was approved for the same purpose.
“On July 25, 2024, another ₦4 trillion bond was approved to settle similar debts. There have also been other approvals in between, all targeted at addressing the same power sector
liabilities.” Peter Obi said.
Obi’s remarks highlight a significant discrepancy in the govt’s narrative. Historical records confirm that in May 2024, the Minister of Power, Adebayo Adelabu, announced a similar ₦3.3 trillion approval by President Tinubu for the gradual payment of power sector
debts. 
Furthermore, in July 2025, the Federal Government announced ₦4 trillion bond program (equivalent to a $2.6 billion refinancing plan) aimed at clearing verified debts owed to power generation companies (GenCos) and gas suppliers.
The former Anambra State Governor challenged the administration to clarify the relationship between these overlapping figures.
“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 2024?” Obi asked, demanding accountability for the funds.Beyond the repetitive nature of the announcements, Obi raised fundamental concerns regarding the public financial management. He noted that a significant portion of the accumulated debt is owed by government institutions and agencies, including the Presidential Villa itself.
This raises a critical question: if funds were appropriated in annual budgets for utility payments, why these obligations not settled when due? The source of the funding for this new payment plan is also a point of contention.
With Nigeria already grappling with a severe debt burden, Obi questioned whether the govt is resorting to further borrowing to service systemic inefficiencies. He demanded transparency regarding the actual total debt in the power sector, how it accrued, and which components are a result of operators’ inefficiencies that should not be borne by the public.
The political context of this crisis cannot be ignored. During the 2023 presidential
campaign, candidate Bola Tinubu made a definitive promise to Nigerians: if he failed to deliver stable electricity, they should not re-elect him.
Yet, three years into his administration, the reality on the ground contradicts this pledge. Power supply has arguably worsened, with the national grid experiencing frequent collapses.
The situation has deteriorated to the point where discussions have reportedly emerged about disconnecting the Presidential Villa from the national grid. As the government insists that this latest intervention will finally stabilize the sector, critics remain skeptical. The administration maintains that the reforms, which include better metering and service-based tariffs, will ultimately lead to more reliable power for homes
and stronger support for businesses.
However, for Peter Obi and many Nigerians, the time for recycled announcements has passed.
“Nigeria must move beyond recycled announcements and confront the power
sector crisis with sincerity, transparency, and decisive reforms,” Obi stated. “Until we do so, we will remain trapped in a cycle of debt and darkness.”
The coming months will reveal whether this ₦3.3 trillion approval is indeed the “full and final” solution the government claims it to be, or simply another chapter in Nigeria’s enduring power sector crisis.
