The Federal Government has earmarked a significant N1.99 billion to fuel generators at the State House in the 2025 budget proposal.
This allocation marks a dramatic increase of over 5,100 percent compared to the N37.96 million set aside for the same purpose this year. In 2022, the amount allocated was even lower, at N30.68 million.
The steep rise in the budget allocation for State House generators raises questions about the government’s confidence in the country’s public power infrastructure, which has long struggled to meet demand.
Despite massive investments in the sector, reliable electricity supply remains a persistent challenge for Nigeria.
Between 2021 and 2024, Nigeria is estimated to have spent about N1.2 trillion on the power sector. The sector’s budget allocation surged from N133.479 billion in 2020 to N306.23 billion in 2022, with a focus on capital expenditures aimed at improving infrastructure.
In 2023, N258.494 billion was allocated, of which N251.609 billion was for capital projects.
However, these investments have not translated into significant improvements for citizens. Frequent blackouts continue to disrupt homes and businesses, forcing many to rely on costly self-generated power.
Some businesses have even shut down or relocated due to the unsustainable cost of running on alternative energy sources.
The economic toll of Nigeria’s power crisis is severe. According to the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), businesses lose an estimated $29 billion annually due to inadequate power supply.
The sector faces challenges such as unreliable infrastructure, high tariffs, and insufficient supply, all of which stifle industrial growth, deter investment, and limit job creation.
In response to these challenges, the 2025 budget proposal includes N2.09 trillion for the Ministry of Power, with N2.08 trillion allocated for capital projects. Whether this will lead to substantial improvements in the power sector remains to be seen.
