2026 Budget Reveals N92.9 Billion Allocation for Power and Fuel Across Federal Agencies
In the proposed 2026 Appropriation Bill, the Federal Government has earmarked N92.9 billion for electricity and diesel expenditures across its ministries, departments, and agencies (MDAs). This substantial allocation underscores the persistent financial burden imposed by Nigeria’s unreliable public power supply on the national treasury. The data, sourced from the budget document, indicates that despite ongoing reforms, federal institutions continue to rely heavily on both grid power and backup generators to sustain daily operations.
Major Allocations for Grid Electricity
A detailed breakdown shows electricity spending is widespread. The Ministry of Defence leads with a N16.16 billion allocation, catering to the needs of military facilities nationwide. It is followed by the Federal Ministry of Health and Social Welfare at N9.43 billion, largely for teaching hospitals, and the Federal Ministry of Education at N8.23 billion for universities and colleges. Other significant allocations include the Ministry of Police Affairs (N3.69 billion) and the Office of the National Security Adviser (N3.59 billion). Even oversight bodies like the Code of Conduct Bureau have substantial electricity provisions, demonstrating the scale of this expenditure.
Substantial Diesel Budgets Highlight Grid Dependency
Parallel to grid electricity costs, the budget reveals heavy provisions for diesel, confirming MDAs’ dependence on generators. The Ministry of Health and Social Welfare tops this category with N8.29 billion, followed again by Defence at N6.6 billion and Education at N5.75 billion. Agencies such as the Police Service Commission also allocated funds for diesel, albeit at lower levels. This pattern of dual budgeting for both utilities and fuel is a clear indicator of systemic power challenges, a reality that institutions from the Asf Lagos 2025 event organizers to the Bauchi Federal Poly must navigate daily. Meanwhile, in security operations, troops repel terrorists in remote areas often without reliance on the national grid, highlighting a different set of operational challenges.
The cumulative N92.9 billion allocation represents a significant recurrent cost, diverting funds that could be channeled into other critical areas of development. This spending occurs in a broader economic context where sectors from construction to fintech, including services like the Coinspaid crypto payment gateway, seek stable infrastructure to thrive. While the government has stated it is not afraid to tackle the power sector’s deep-seated issues, the 2026 budget projections show that the financial impact of unreliable electricity remains a formidable and immediate fiscal pressure.
