The Federal Government of Nigeria is earmarking N450bn for power interventions in 2024, as revealed by the budget analysis of the Nigerian Bulk Electricity Trading Company. This substantial allocation, listed under the company’s capital expenditure, highlights the government’s commitment to addressing challenges within the power sector.
The Nigerian Bulk Electricity Trading Company’s total expenditure for 2024 is projected to be N454.81bn, with allocations across various categories. Notably, N2.44bn is allocated for personnel costs, N2.36bn for other recurrent costs, N580m for general travel and transport, N15m for utilities, N110m for materials and supplies, N210.75m for general maintenance services, N34m for other services, N60m for fuel and lubricants, N40m for financial charges, N576m for miscellaneous, and N736.51m for supplementary overhead.
The significant portion of this budget is directed towards the ‘FGN Power Intervention Fund,’ emphasizing the government’s focus on addressing challenges and enhancing the power sector’s performance. This allocation comes in the wake of consistent government interventions over the years to bolster the power sector.
As of May 2022, the Federal Government’s intervention fund to electricity distribution companies had reached N2.9trn, representing the total funding extended to the sector since its privatization in 2013. Previous interventions include the approval of N701bn as Power Assurance Guarantee in 2017 and an additional N600bn announced in 2019.
Despite these financial injections, the power sector has faced challenges, including grid collapses. In response, the House of Representatives, as of October 2023, expressed its intention to probe all financial interventions in the power sector over the past decade, covering investments totaling over $1.25bn.
The Lagos Chamber of Commerce and Industry, in its New Year statement, emphasized the need to bring private sector investment into the transmission segment of the power sector. This recommendation aims to enhance technical and financial capacity, contributing to a well-functioning sector that can power economic growth.
