Federal Government Allocates N450bn for Major Power Boost in 2024

The Nigerian Bulk Electricity Trading Company’s budget analysis reveals that the Federal Government is gearing up to invest N450bn in power interventions throughout 2024. Allocated under the firm’s capital expenditure, the ‘FGN Power Intervention Fund’ aims to address challenges within the power sector. The Government Owned Enterprise’s total expenditure plan for 2024 stands at N454.81bn, with various segments earmarked for specific purposes.

The breakdown includes N2.44bn 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.

Despite continuous government interventions, the power sector faces challenges, as grid collapses persist. The House of Representatives, as of October 2023, expressed its intent to scrutinize over $1.25bn injected into the power sector by the Federal Government since the 2013 privatization. This initiative aims to assess the effectiveness and transparency of past interventions.

Ademorin Kuye, a member of the House of Reps, highlighted concerns about the Nigeria Electricity Regulatory Commission’s performance and called for improved industry regulation. The Lagos Chamber of Commerce and Industry also emphasized the need for private sector investment in the transmission segment to enhance technical and financial capacity for a robust power sector that fuels economic growth.