Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has criticised the Federal Government’s plan to raise fresh funds to settle debts in the power sector, describing the move as a “racket dressed up as reform.”
In a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku accused the government of repeatedly borrowing to address the same power sector liabilities without providing a clear account of how previous interventions were utilised.
He described the proposed bond, which would increase power sector debt obligations to about ₦4 trillion, as an example of fiscal recklessness and lack of transparency.
According to Atiku, the Federal Government had previously announced several debt-clearing initiatives for the electricity sector, including a ₦590 billion power sector bond in December 2025 and another ₦501 billion bond a month later to settle debts owed to electricity generation companies and gas suppliers.
He also recalled that President Bola Tinubu approved a fresh ₦3.3 trillion intervention plan in April 2026 to address outstanding obligations in the sector.
However, Atiku argued that recent disclosures by the Association of Power Generation Companies indicated that much of the debt remained unpaid despite the various funding interventions.
He questioned the whereabouts of the funds already raised, insisting that Nigerians deserve a comprehensive explanation before any fresh borrowing is undertaken.
The former Vice President said the recurring pattern of announcing debt-settlement programmes, celebrating the interventions and then returning to seek more loans without full disclosure raises serious concerns about accountability.
He maintained that the government must disclose how much had been raised under the various schemes, where the funds were kept, who received payments, the debts settled and the obligations that remain outstanding.
Atiku further lamented the continued liquidity crisis in the electricity sector, noting that ordinary Nigerians and businesses continue to bear the burden of poor power supply and rising energy costs.
He warned that no responsible government should repeatedly borrow to settle liabilities it had previously claimed to have resolved, insisting that full transparency and accountability must precede any new debt issuance.
The Federal Government has yet to officially respond to the allegations.
Nigeria’s power sector has for years struggled with mounting debts owed to generation companies and gas suppliers, with industry operators warning that the situation continues to threaten electricity supply and discourage investment in the sector.