Former Vice President Atiku Abubakar has criticized the Federal Government’s plan to raise a new bond estimated to push power sector debt to about ₦4 trillion, accusing the administration of lacking transparency and repeatedly borrowing to solve the same electricity crisis without proper accountability.
Atiku said Nigerians deserved full disclosure on how previous funds raised for the power sector were spent before any fresh borrowing is approved. He described the government’s approach as a “racket dressed up as reform,” warning that the recurring cycle of debt without clear results was worsening public distrust.
The comments were contained in a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu.
In the statement, the African Democratic Congress presidential candidate described the latest borrowing plan as “a scandalous display of fiscal recklessness, institutional dishonesty, and brazen contempt for public accountability.”
He argued that successive debt interventions in the electricity sector had failed to deliver lasting results despite repeated announcements by the government that funds were being raised to clear obligations owed to power generation companies and gas suppliers.
Atiku said Nigerians were justified in questioning what had become of earlier interventions, insisting that there was little evidence that the debts had been fully cleared.
He recalled that on December 20, 2025, the Federal Government announced the issuance of a ₦590 billion bond aimed at clearing outstanding obligations in the power sector. According to him, the move was presented as a major step toward stabilizing the electricity market.
He further noted that barely a month after that announcement, another ₦501 billion bond was reportedly fully subscribed under the same program and earmarked for the settlement of verified debts.
Despite these interventions, Atiku said the expected improvement in the sector had not materialized, raising concerns about whether the funds actually reached intended beneficiaries.
He also referenced a separate ₦3.3 trillion debt clearance plan approved in April 2026 by President Bola Tinubu, which was described by government officials as a breakthrough in addressing liquidity challenges in the power sector.
However, Atiku said recent statements from stakeholders in the electricity value chain suggested that many of the debts remained unpaid.
He cited comments attributed to the Association of Power Generation Companies, which reportedly indicated that payments had not been fully disbursed despite the bond arrangements.
“In simple terms, billions were raised, announcements were made, victory was declared, but creditors are still waiting for payment,” the statement said.
Atiku further referenced claims by the association’s Chief Executive Officer, Joy Ogaji, that funds from the ₦501 billion bond had yet to translate into actual payments to some power generation companies.
He described the situation as contradictory and troubling, arguing that it undermined public confidence in government financial management.
The former Vice President also recalled President Tinubu’s June 12 Democracy Day address, during which the President highlighted ongoing reforms in the power sector, including fresh debt-clearing initiatives.
According to Atiku, the announcement was received as a positive signal, but was soon followed by renewed concerns over the status of previously approved funds.
“What makes this development even more troubling is that Nigerians were confronted by the uncomfortable reality that previous debt-clearing bonds remain shrouded in unanswered questions,” he said.
Atiku stressed that governance should be judged not by announcements, but by transparency and measurable results.
“Democracy is not sustained by grand declarations; it is sustained by accountability,” he stated.
He questioned why the government had continued to seek fresh loans without providing a clear breakdown of how earlier interventions were managed.
The former Vice President likened the situation to repeatedly raising funds for the same problem without resolving it, describing it as a pattern that raises serious governance concerns.
“There is a name for repeatedly collecting money to solve the same problem while the problem remains unsolved. It is called a racket,” he said.
Atiku outlined what he described as a troubling cycle in the sector: the announcement of a crisis, borrowing to address it, declaration of success, lack of transparency on fund usage, and eventual return for more borrowing without clear resolution.
He argued that such a pattern would not be tolerated in more accountable systems and could trigger investigations in serious democracies.
The former Vice President also highlighted the impact of the unresolved power sector crisis on ordinary Nigerians, saying businesses and households were bearing the burden of poor electricity supply and high energy costs.
He said manufacturers were struggling with competitiveness, while families were forced to rely heavily on generators and alternative power sources to meet daily energy needs.
Atiku therefore called on the Federal Government to publish a full breakdown of all funds raised under various power sector debt settlement programs.
He demanded details on how much was raised, where the funds were kept, who received payments, what debts were cleared, and what obligations remain outstanding.
He warned that failure to provide transparency would deepen public suspicion that the power sector had become a channel for financial mismanagement rather than reform.
“No serious nation can continue to borrow its way into darkness,” he said.
As of the time of filing this report, the Federal Government had not issued an official response to the allegations.
Nigeria’s power sector has for years struggled with liquidity challenges, mounting debts, and inconsistent electricity supply despite repeated government interventions aimed at stabilising the industry.