FG allocates over N1tn to revive power sector amid grid collapse crisis  

The Federal Government has earmarked N1.2tn in the 2025 budget for transformative power sector interventions, aiming to tackle Nigeria’s persistent electricity challenges and enhance national productivity. This allocation is part of a broader strategy to improve electricity generation, distribution, and access across the country.

A significant chunk of the budget, N810bn, is directed towards fulfilling obligations under the World Bank’s $1.74bn Power Sector Recovery Programme and the $2.62m Distribution Sector Recovery Programme (DISREP). The DISREP initiative targets the installation of 3.2 million electricity meters, addressing Nigeria’s metering gap and reducing energy theft.

In addition to these international projects, the government plans to invest N269.74bn in special intervention projects and N47.35bn for the construction of transformers and substations. Another N36.82bn is earmarked for counterpart funding of key transmission lines and substations, including the Zungeru transmission project.

Despite these ambitious allocations, the recurring collapse of the national power grid remains a significant concern. In 2024 alone, the grid failed 12 times, crippling small businesses and manufacturers and deepening the country’s power crisis. According to the Minister of Power, Adelabu Adebayo, at least $10bn is needed over the next decade to ensure 24-hour electricity supply across Nigeria.

The budget reflects a shift towards renewable energy and community-based solutions. Notable allocations includes N10million for a 50-megawatt grid-connected solar project in Jigawa State, N160million for bilateral renewable energy projects under ISA, ECREEE, and KOICA, N24.7billion for solar streetlights on major highways.

Mini-grids for federal and state polytechnics nationwide will receive N24 billion, while N36 billion is set aside for interventions in transformer distribution and cable replacements across Nigeria’s six geopolitical zones.

The government also seeks to address systemic challenges in the power sector. About N8.1 billion is allocated for public awareness campaigns against vandalism of power infrastructure, while N150 million is reserved for pre-retirement skill acquisition programs for power sector workers.

Additionally, N1.41 billionis set aside to provide basic amenities for communities affected by ongoing power projects, aiming to foster local cooperation and mitigate resistance.

While these initiatives reflect a strong commitment to resolving Nigeria’s power crisis, experts caution that structural inefficiencies and governance issues could undermine their success. Moreover, the ambitious goal of achieving 6,000 megawatts of power generation by the end of 2025 faces significant hurdles, including inadequate infrastructure and financing gaps.

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