The Federal Government’s plan to approve a massive ₦4 trillion bailout bond for the power sector has ignited outrage, with the Centre for Transparency and Accountability in Nigeria (CTAN) warning that Nigerians are being dragged into debt without answers.
In a strongly worded statement signed by Prof. Adekunle Alao, CTAN’s Coordinator, the group said the bailout is shrouded in secrecy and risks turning into a political slush fund ahead of the 2027 elections.
*Nigerians in the Dark*
Since President Bola Tinubu assumed office in May 2023, the national grid has collapsed several times – October 2023, February 2024 and most recently September 10, 2025, when generation crashed from 3,000MW to 1.5MW. That left the nation of 200 million people effectively in blackout.
Yet, the government is pushing to issue bonds to settle debts for GenCos and DisCos, even though only ₦1.8 trillion of the ₦4 trillion claimed has been verified.
“More than half of the debt is unverified, yet Nigerians are being asked to pay blindly,” CTAN warned.
*The Red Flags*
₦1.9 trillion subsidy claimed for 2024 alone – higher than nearly a decade of validated arrears.
₦2.6 trillion owed by DisCos to the government still unsettled.
No published breakdown of who is owed what, or how much electricity was supplied.
“This bailout is not about power; it is about politics,” Prof. Alao said.
*The Risks*
CTAN listed three dangers:
1. Opacity – No verified debt schedule has been released.
2. Service Failure – Paying without tying funds to actual electricity supplied guarantees continued blackouts.
3. Political Diversion – The bailout could quietly double as campaign financing.
*Demands Before Any Bailout*
CTAN insisted that before Nigerians are saddled with more debt, government must:
▪︎Publish a GenCo-by-GenCo, DisCo-by-DisCo debt schedule.
▪︎Deduct the ₦2.6 trillion already owed by DisCos.
▪︎Tie payments to actual power delivered.
▪︎Launch a real-time public dashboard to track generation and outages.
▪︎Subject the bailout to independent audit and live-streamed National Assembly hearings.
*“No Transparency, No Bailout”*
The statement ended with a reminder of President Tinubu’s own words in 2022: “If I cannot deliver constant electricity in four years, I do not deserve a second term.”
“On behalf of Nigerians, we say: No light, no second term. No transparency, no bailout,” Prof. Alao declared.
