Power debt: Atiku slams ₦4tn bond, demands accountability

Nigeria's Federal Government is facing sharp criticism over its handling of the power sector's mounting debt, with former Vice President Atiku Abubakar leading the charge.

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a racket dressed up as reform

Abubakar has accused the government of engaging in a "racket dressed up as reform" by continuously borrowing to address the persistent debt issues in the electricity sector. He is demanding a full public accounting of how previously raised funds were utilized before the government proceeds with its latest plan to issue a N4tn bond. This new bond would further increase the nation's debt liability specifically for settling outstanding obligations in the power sector.

Through his Senior Special Assistant on Public Communication, Phrank Shaibu, Abubakar described the government's plan as a "scandalous display of fiscal recklessness, institutional dishonesty, and brazen contempt for public accountability." He highlighted a recurring cycle of borrowing, deception, and non-disclosure under the current administration, stating that Nigerians are justified in demanding explanations. Abubakar recalled several past debt-clearing initiatives, including a N590bn bond announced in December 2025 and another N501bn bond shortly after, both intended to clear debts owed to electricity generation companies and gas suppliers.

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a scandalous display of fiscal recklessness, institutional dishonesty, and brazen contempt for public accountability.

Adding to the controversy, Abubakar pointed to President Bola Tinubu's approval of a fresh N3.3tn plan in April 2026 to clear power sector debts, which was presented as a breakthrough. However, recent disclosures from the Association of Power Generation Companies suggest these debts remain largely unpaid. The association's CEO, Joy Ogaji, reportedly stated that the N501bn bond raised for debt settlement had not yet translated into payments to creditors. This starkly contradicts government claims of progress and raises serious questions about the efficacy and transparency of the interventions.

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Nigerians have every right to be outraged by what is fast becoming a recurring cycle of borrowing, deception, and non-disclosure under the Tinubu administration.

Further compounding the issue, Abubakar referenced President Tinubu's June 12 Democracy Day address, where a new power sector intervention was highlighted as evidence of his administration's reform agenda. The former Vice President's critique underscores a deep-seated concern over fiscal responsibility and public accountability, particularly regarding the substantial funds allocated to the power sector without a clear resolution of the underlying debt problems.

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Yet, in a stunning contradiction of those claims, the Association of Power Generation Companies has publicly disclosed that the debts remain largely unpaid.