FG Allocates N1.1trn for Power Sector in Appropriation Bill

The Federal Government has allocated over N1.1 trillion to the power sector in the 2026 Appropriation Bill, an amount higher than the N900 billion budgeted for the sector in 2025.

However, stakeholders have raised concerns as no part of the allocation is explicitly earmarked for electricity tariff support or subsidy payments, which operators say is about N200 billion monthly.

The Managing Director/Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, expressed disappointment, saying the omission clearly shows the scale of preference accorded to the power sector.

“This suggests a shift away from explicit budgetary recognition of the shortfall, effectively transferring the financial burden to operators across the value chain, particularly generation companies and gas suppliers,” Ogaji said.

The power sector has been struggling with liquidity challenges, technical losses, and revenue collection inefficiencies.

The Federal Government’s inability to settle subsidy payments has led to a rise in debts owed to power generation companies, currently estimated at over N5 trillion.

The Minister of Power, Adebayo Adelabu, attributed the omission to the Ministry of Finance, saying it’s their responsibility to include power subsidy payments in the budget.

The allocation for the power sector is spread across the Federal Ministry of Power and its agencies, with the Nigeria Bulk Electricity Trading Plc receiving a substantial vote under the Ministry of Finance.