The Centre for the Promotion of Private Enterprise (CPPE) has raised serious concerns over Nigeria’s growing power sector debt, warning that the current N4 trillion liability is fiscally unsustainable and poses a significant threat to the nation’s economy.
In a recent statement, CPPE’s Chief Executive Officer, Dr. Muda Yusuf, said the continued accumulation of debts in the electricity sector highlights deep structural and operational weaknesses that must be urgently addressed. According to him, the rising financial obligations are largely due to inefficiencies in tariff structures, weak revenue collection, and heavy government subsidies that are no longer viable.
Dr. Yusuf warned that if the debt trend continues unchecked, it could lead to a collapse of investor confidence in the sector, disrupt services, and hinder further investment. He called on the federal government to implement bold reforms, including a review of pricing models and improvement of governance structures within the sector.
He also advocated for increased private sector participation and improved transparency to ensure a commercially viable and sustainable electricity market. “The power sector cannot thrive on government bailouts and subsidies alone,” he said. “There must be a clear strategy for cost-reflective tariffs, reduced technical losses, and improved efficiency.”
The CPPE urged policymakers to take urgent steps in addressing the sector’s financial imbalance, warning that failure to act could have long-term consequences on economic growth, job creation, and overall investor confidence in Nigeria’s infrastructure development plans.
