Former Vice President Atiku Abubakar has slammed the Federal Government power sector plan, calling ₦4trn debt bond “racket dressed as reform.”
He demanded public ledger before new borrowing.
The criticism followed the Federal Government’s latest strategy to raise a bond that would increase national debt liability to ₦4 trillion, aiming to clear outstanding financial obligations to electricity generation companies (GenCos) and gas suppliers.
Atiku, speaking through his Senior Special Assistant on Public Communication, Phrank Shaibu, labeled the plan an exercise in fiscal recklessness and a direct evasion of public accountability.
According to the statement issued on Sunday, the government has repeatedly announced massive debt-clearing initiatives for the electricity market, yet industry operators indicate that creditors remain largely unpaid.
Atiku outlined a timeline of recent financial interventions that have failed to yield visible results:
December 20, 2025: The government announced a ₦590 billion power sector bond to clear debts owed to generation companies and gas suppliers.
January 2026:A secondary ₦501 billion bond under the same intervention framework was reportedly fully subscribed.
April 2026: President Bola Tinubu approved an expanded ₦3.3 trillion plan marketed as a structural breakthrough to stabilize the power market.
Despite these heavily publicized borrowing programs, Atiku pointed out that the Association of Power Generation Companies recently disclosed that payments have not reached creditors. He noted that billions of naira are being consistently approved and celebrated by officials while the liquidity crisis in the electricity grid persists.
Atiku argued that the emerging pattern of announcing a recurring crisis, borrowing heavily to solve it, and then returning for fresh loans without accounting for the previous disbursements constitutes institutional opacity. He stressed that democratic governance relies heavily on transparency, rather than grand political declarations.
The continuous liquidity shortfalls within the power grid heavily impact everyday citizens and domestic manufacturing. Businesses continue to collapse under the weight of severe energy costs, while households face a regular dependence on expensive alternative power sources.
The former Vice President demanded that the Federal Government release a comprehensive breakdown detailing exactly how much was raised from previous bonds, where the capital was domiciled, who received the payments, and why substantial fresh borrowing is required if previous debts were supposedly cleared. The Federal Government has not yet issued an official response to the statement.
