Former Vice President and presidential candidate of the African Democratic Congress, Atiku Abubakar, has criticised the Federal Government’s plan to raise additional funds to settle debts in the electricity sector, describing the move as evidence of poor accountability and fiscal mismanagement.
In a statement issued on Sunday through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku challenged the government to explain how previously raised funds for the same purpose were utilised before proceeding with another debt-financing arrangement.
The former vice president was reacting to plans that could see the Federal Government’s intervention in the power sector rise to about ₦4 trillion, a move he argued raises serious questions about transparency and the effectiveness of past debt-settlement initiatives.
According to Atiku, Nigerians deserve a comprehensive account of earlier interventions, especially as successive debt-clearing programmes have failed to resolve the sector’s persistent liquidity challenges.
He recalled that the government announced a ₦590 billion power sector bond in December 2025 to offset debts owed to electricity generation companies and gas suppliers. He further noted that another ₦501 billion bond was reportedly fully subscribed shortly afterwards for the settlement of verified obligations.
Atiku also referenced the Federal Government’s approval of a ₦3.3 trillion debt-clearance programme in April 2026, which officials had presented as a major step toward restoring stability in the electricity market.
However, he argued that recent comments by power sector stakeholders suggest that many of the liabilities remain unpaid despite the various interventions.
The ADC presidential candidate questioned why creditors were still awaiting payments if the funds raised through earlier bond issuances had been properly deployed.
He maintained that repeated borrowing to address the same challenge without publicly disclosing how previous funds were spent would only deepen public suspicion.
Atiku also cited President Bola Tinubu’s Democracy Day address, in which the President highlighted ongoing reforms in the electricity sector, arguing that meaningful reforms must be accompanied by transparency and measurable results.
He called on the Federal Government to provide a detailed breakdown of all funds raised under power sector debt-settlement programmes, including where the money was kept, beneficiaries of the payments, debts settled, and outstanding obligations.
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According to him, Nigerians have a right to know why fresh borrowing is being proposed despite assurances that previous interventions would address the sector’s financial difficulties.
Atiku warned that continued reliance on debt without accountability could undermine public confidence in government reforms, insisting that governance should be measured by transparency rather than repeated policy announcements.
He further argued that the ongoing liquidity crisis in the electricity sector continues to affect businesses and households through unreliable power supply, rising operational costs and increased dependence on alternative energy sources.
The former vice president urged the government to provide answers before proceeding with any new borrowing programme, stressing that accountability remains critical to restoring public trust and ensuring the long-term sustainability of the power sector.
As of the time of filing this report, the Federal Government had not issued an official response to Atiku’s allegations.
Nigeria’s electricity industry has for years grappled with mounting debts owed to generation companies and gas suppliers, with stakeholders warning that unresolved financial obligations continue to threaten investment and stability within the sector.