2025 Budget: 593 MDAs to Fuel Generators with N41bn
Federal Ministries, Departments and Agencies will spend about N40.81bn to purchase petrol or diesel to power their generators in 2025.
The amount to be spent by 593 MDAs was listed as generator fuel costs in the 2025 appropriation budget, highlighting the unstable power supply situation in Nigeria.
Nigeria has struggled with poor power supply for decades, often caused by generation and transmission problems. In 2024 alone, the country’s national grid collapsed 12 times. To ease their operations, private businesses and government establishments often rely on alternative sources of electricity, mainly generating sets.
The Manufacturers Association of Nigeria in its half-year report, said its members spent N238.31bn on alternative energy sources in H1 2024, a 7.69 per cent increase from H2 2023.
“The surge in costs was driven by higher prices for diesel, gas, and other energy sources, as well as the need for manufacturers to invest in self-energy generation due to unreliable power supply from the national grid,” MAN stated.
In October, the Minister of Power, Adebayo Adelabu, said the electricity supply had improved. He said the improved electricity supply meant Nigerians no longer had to buy petrol as much as they used to for their generators.
However, analysts disagreed with the position as small businesses and manufacturers continue to suffer from the ripple effect of poor power supply.
As a solution, the House of Representatives through the Committee on Renewable Energy urged the government to immediately adopt renewable energy solutions in its Ministries, Departments, and Agencies to reduce the expenditure on energy in the country’s annual Budget.
It said increasing energy costs contribute to substantial operational costs and consequent financial strain, draining the nation’s financial resources.
However, an analysis of the generator fuel cost for 593 MDAs showed a surge in the proposed budget for fuel purchase.
The Nigerian Army tops the list of institutions with the biggest proposals with its N3.897bn budgetary proposal for generator fuel costs. The State House allocated a sum of N1.999bn for fuel costs, while the Economic and Financial Crimes Commission will spend N1.195bn on the same expenditure.
Similarly, the Ministry of Defence will spend N250m on generator maintenance, while the Nigerian Defence Academy will spend the sum of N399.58m.
The Defence Intelligence School budgeted the sum of N153.32m while the Ministry of Foreign Affairs would expend the sum of N567.97m. The National Obstetric Fistula Centre will spend N1.42bn on fuel costs.
The Ministry of Information and National Orientation proposed N40.74m; the Federal Radio Corporation of Nigeria will expend N136.85m; the Voice of Nigeria proposed N235.91m; and the Nigerian Correctional Services plans to spend N229.79m.
The Nigeria Security and Civil Defence Corps will spend N150m, The Office of the Head of the Civil Service of the Federation plans to spend N227.5m, N200.59m for the Auditor-General for the Federation, N511.68m for Police Formations and commands.
Other top spenders are the National Security Adviser which budgeted N122.94m; the Directorate of State Services with N212m; the National Institute for Security Studies with N200m; the National Intelligence Agency with N167.03m; while the Federal Road Safety Commission budgeted N2.566bn.
Also, the Ministry of Agriculture and Food Security will spend N160.38m, and N250m for the Federal Ministry of Finance.
SOURCE: The PUNCH
