Atiku Abubakar Questions Government’s N4 Trillion Power Sector Bond Proposal
Atiku Abubakar, former vice-president and African Democratic Congress (ADC) presidential candidate, has raised serious concerns regarding the federal government’s recent proposal for a N4 trillion bond intended for the power sector. He is demanding a thorough accounting of prior interventions and has warned against what he perceives as a troubling trend of opaque borrowing practices.
Call for Transparency on Previous Fund Utilization
Mr. Abubakar emphasized that the administration of President Bola Ahmed Tinubu has an obligation to clarify how previous funds raised to address the power sector’s debt were utilized. He highlighted that the government is proposing new borrowings to tackle debts it had previously claimed were resolved, which raises significant questions about the management of public funds.
Recurrent Borrowing and Limited Transparency
In a statement released from Abuja on Sunday by his Senior Special Assistant on Public Communications, Plank Shaibu, the former vice president characterized the ongoing situation as a disconcerting cycle of continual borrowing paired with inadequate disclosure and unresolved obligations. He recalled the federal government’s announcement of a £590 billion bond issue in December 2025, aimed at offsetting confirmed debts owed to power generation and gas distribution companies. Following this, a successful application for ₦501 billion bonds was made under the same initiative.
Recent Government Interventions Fail to Resolve Debt Issues
Abubakar also noted the federal government’s approval of an additional N3.3 trillion intervention in April 2026, which officials claimed would address outstanding debts within the power sector, enhance liquidity, and support ongoing reforms necessary to stabilize the power supply. Despite these numerous interventions, power producers continue to voice complaints regarding unpaid debts, casting doubt on the effectiveness of past financial programs.
Concerns Raised Over Debt Resolution Initiatives
He pointed out that President Tinubu’s comments about a new debt resolution initiative during his June 12 Democracy Day speech have only raised further concerns about how previous interventions have been managed. According to the former Vice President, Nigerians deserve transparency regarding the allocation of funds previously raised for the power sector’s debt settlement, including details about beneficiaries and the persistence of the debt despite multiple government efforts.
Demand for Accountability in New Financing Requests
Mr. Abubakar argued that any future borrowing must prioritize transparency and accountability, asserting that public trust in the government’s financial management rests on comprehensive disclosure. He accused the administration of continuously announcing the sector’s crises, mobilizing resources, and claiming progress, only to return with new funding requests while many fundamental issues remain unaddressed.
Urgent Call for Detailed Financial Disclosure
Describing the situation as a “revolving door of debt and opacity,” Abubakar is urging the federal government to publish a detailed breakdown of all funds raised under the power sector debt settlement program. This should include information about beneficiaries, amounts disbursed, outstanding debts, and the justification for new bond issuances. He stressed that Nigerians should not be asked to support new borrowing without first receiving a comprehensive explanation of past interventions.
As of the time of this report, there has been no immediate response from the presidential administration regarding these allegations. Abubakar concluded by warning that absent proper explanations, this entire endeavor may increasingly appear as a facade for deeper issues, masquerading as reform while concealing substantial underlying problems.
