Former Nigerian presidential candidate Peter Obi has publicly criticized the federal government’s repeated approvals of N3.3tn in electricity debt, raising concerns about fiscal management and transparency. The debt, which has been approved multiple times in recent years, has sparked debate over Nigeria’s economic priorities and accountability in the power sector.
According to analysts, the repeated debt approvals suggest systemic issues in Nigeria’s electricity market, where distribution companies struggle with liquidity despite government interventions. Sources within the Ministry of Power acknowledge the challenges but argue that the approvals are necessary to prevent total sector collapse.
Obi, a prominent opposition figure, framed the issue as part of broader concerns about Nigeria’s rising public debt and inefficient subsidies. ‘We cannot keep approving billions without clear repayment plans or operational reforms,’ he stated at a recent forum. Government officials counter that the debts are temporary measures to stabilize the grid while long-term reforms take effect.
The controversy comes as Nigeria faces mounting economic pressures, including currency devaluation and inflation. Experts warn that without structural changes, the power sector could consume an unsustainable portion of national resources.