morganable politics/Governance
The controversy surrounding the power sector dates back to the late 2000s when the expenditure, commonly cited at about $16bn, became the subject of public debate and legislative scrutiny.
KaNo —
A fresh political confrontation has erupted between former Vice President Atiku Abubakar and the Federal Government over the long-standing controversy surrounding power sector expenditure and the management of funds following the removal of petrol subsidy.
Atiku, the presidential candidate of the African Democratic Congress (ADC), has challenged the administration of President Bola Ahmed Tinubu to investigate and prosecute him if there is credible evidence linking him to the alleged mismanagement of $16bn earmarked for power projects during the Olusegun Obasanjo administration.
The former vice president made the call in a statement issued on Wednesday by his Senior Special Assistant on Public Communication, Phrank Shaibu, accusing the current government of recycling old allegations to divert attention from pressing economic concerns, particularly the use of revenues generated from subsidy removal.
According to Atiku, the resurfacing of the power sector controversy is politically motivated and aimed at deflecting scrutiny from the economic hardship Nigerians are currently experiencing.
“The National Assembly investigated the power projects. I was never invited to answer any allegation of wrongdoing,” Atiku said, reiterating his longstanding position on the issue.
“Yes, I chaired the National Council on Privatisation as Vice President. But on the power project, I disagreed with its concept and did not preside over its implementation. The responsible minister did,” he said.
Controversy Over $16bn Lingers
The controversy surrounding the power sector dates back to the late 2000s when the expenditure, commonly cited at about $16bn, became the subject of public debate and legislative scrutiny.
Subsequently, the administration of the late President Umaru Yar’Adua also raised concerns about the expenditure, with early estimates placing the figure at about $11bn before it became widely reported as $16bn.
Former President Obasanjo had, however, defended the spending, citing investigations by the Economic and Financial Crimes Commission (EFCC) and internal government reviews, which he argued did not support claims that the funds were squandered.
Reports from those reviews indicated that only about $3.7bn of the roughly $10bn budgeted amount was actually disbursed, while the balance remained in accounts with the Central Bank of Nigeria.
Further details emerged in an EFCC report published in 2018, which reportedly showed that about N1.2tn had been allocated to the National Integrated Power Project (NIPP), but only approximately N360.7bn was paid to contractors before the end of the Obasanjo administration in 2007.
The report also cited about N273.65bn spent on the Power Holding Company of Nigeria (PHCN) between 1999 and 2007.
“I have repeatedly asked to be investigated. I left office in 2007 and have spent much of the period since then opposing governments in power. If there is evidence that I stole public money, why has no government produced it before a court?” he queried.
“It is still not too late. Investigate me. Invite me. Produce the evidence. Prosecute me if you have a case. But propaganda cannot substitute for evidence,” he added.
Subsidy Removal Imposed Significant Hardship On Nigerians
The former vice president also turned his criticism towards the economic policies of the Tinubu administration, particularly the removal of petrol subsidy, which he said has imposed significant hardship on Nigerians without corresponding transparency in how the savings are being utilised.
Tinubu had announced the removal of fuel subsidy shortly after assuming office in May 2023, describing it as a necessary step to reduce pressure on government finances and redirect funds towards infrastructure and social services.
Atiku argued that while Nigerians were asked to make sacrifices on the promise that the savings would be channelled into development, there has been insufficient accountability regarding the use of the funds.
“They removed subsidy from the suffering masses and promised that the sacrifice would free resources for development. Nigerians accepted extraordinary pain on that promise,” he said.
“Today, petrol is more expensive, transportation is more expensive, food is more expensive, and the purchasing power of the Nigerian worker has been devastated,” he added.
He further questioned the government’s fiscal priorities, alleging that despite increased revenues, economic benefits appear to favour powerful interests through incentives such as tax waivers and concessions.
“Meanwhile, government revenues have increased, while fiscal incentives, waivers, tax credits and concessions continue to be available to powerful economic interests. So, our question remains brutally simple: where is the people’s money?” he asked.
Atiku described the situation as contradictory, arguing that the government cannot justify withdrawing subsidies that provided relief to ordinary citizens while maintaining financial incentives for select economic actors.
“You cannot take relief away from the masses,celebrate the resulting revenue and then tell the same impoverished citizens that government intervention on their behalf is economically irresponsible while interventions benefiting powerful interests are called incentives,” he said.
FG Defends Subsidy Removal
The Federal Government has consistently defended the subsidy removal policy, maintaining that the previous system was unsustainable and prone to abuse.
Officials have argued that the reform is essential for long-term economic stability and have introduced various measures aimed at cushioning its impact.
Despite these assurances, the policy remains one of the most contentious issues of the Tinubu administration, with opposition figures continuing to demand greater transparency and accountability.
Atiku’s latest remarks come amid increasing political activity ahead of the 2027 general elections, as opposition parties intensify criticism of the government’s economic policies.
He also dismissed what he described as “sponsored social-media mudslinging,” insisting that attempts to discredit him would not deter his calls for accountability.
“The people who removed subsidy from the masses cannot frighten us into silence by resurrecting allegations that governments with all the investigative machinery of the Nigerian state have had nearly two decades to establish,” he said.
