By Ayomide Otitoju
The Federal Government has proposed ₦1.096 trillion for capital electricity projects in the 2026 appropriation bill, aiming to tackle long-standing challenges in Nigeria’s power sector, including inadequate generation, transmission bottlenecks, and distribution inefficiencies.
According to a breakdown of the 2026 Appropriation Bill seen by Channels Television, the Rural Electrification Agency (REA) received the largest allocation at ₦502.21 billion. Personnel and overhead costs for the agency were pegged at ₦6.168 billion and ₦4.211 billion, bringing its total allocation to ₦1.107 trillion.
The Federal Ministry of Power was allocated ₦416.748 billion for capital projects and ₦10.379 billion for recurrent expenditure. Of this, ₦987.932 million is earmarked for basic amenities at 38 resettlement sites, including schools, solar boreholes, roads, and health centres, as well as survey and land demarcation.
Planned projects include:
₦840 million for distribution expansion programmes across six regions, each receiving ₦400 million.
₦350 million to complete the 1×7.5MVA Aliameh injection substation in Agbor.
₦280 million for a power mini-grid at Delta University, Agbor.
₦52.5 million for a 300km 33kV line from Ughelli transmission station to the Federal University of Petroleum Resources, Effurun.
The budget also proposes ₦92.9 billion for electricity and diesel consumption across ministries, departments, and agencies (MDAs), highlighting continued reliance on generators due to grid instability. The Ministry of Defence tops electricity allocations with ₦16.16 billion, followed by the Ministry of Health and Social Welfare with ₦9.43 billion and the Ministry of Education with ₦8.23 billion.
Diesel spending is similarly concentrated, with Health and Social Welfare leading at ₦8.29 billion, Defence at ₦6.6 billion, and Education at ₦5.75 billion. Other notable allocations include Police Affairs (₦3.69 billion), the Office of the National Security Adviser (₦3.59 billion), and the Ministry of Foreign Affairs (₦3.49 billion). Smaller agencies, including the Code of Conduct Tribunal, Police Service Commission, and Federal Character Commission, also budgeted for diesel.
The 2026 budget follows the Federal Government’s 2025 launch of the first bond under the Presidential Power Sector Debt Reduction Programme, aimed at addressing longstanding payment arrears in Nigeria’s electricity industry.
