Power Debt Relief Sparks Fresh Calls as Consultant Urges Bola Ahmed Tinubu to Settle Contractors’ ₦3.3trn Claims
A public affairs consultant, Abubakar Yusuf, has called on President Bola Ahmed Tinubu to extend the recent approval of ₦3.3 trillion for the settlement of legacy debts in the power sector to indigenous contractors owed by the Federal Government.
Yusuf, in a statement issued on Sunday, commended the President’s decision to address long-standing financial obligations to power distribution companies, describing it as a bold and necessary step toward stabilising Nigeria’s electricity sector. However, he stressed that similar attention should be given to local contractors who have executed government projects but remain unpaid.
According to him, many indigenous contractors have faced severe financial hardship due to delays in settling verified debts dating back to 2024. He noted that a significant number of these contractors financed projects through bank loans shortly after the current administration assumed office in 2023, leaving them burdened with mounting interest rates and operational challenges.
The consultant warned that continued neglect of these obligations could erode confidence in government contracts and discourage participation in future infrastructure projects. He added that such a development could slow down national growth, given the critical role contractors play in delivering public infrastructure.
Yusuf further expressed optimism in the Tinubu administration’s capacity to address the issue, urging the government to prioritise the payment of outstanding debts. He suggested that a structured bailout or phased settlement plan would not only ease the financial strain on contractors but also reinforce trust in government commitments.
He concluded that settling these obligations would demonstrate the administration’s dedication to economic stability, support for local businesses, and the overall welfare of Nigerians.