The Federal Government has earmarked a significant N1.99 billion for fueling generators at the State House in 2025, according to details from the 2025 budget proposal. This allocation marks a staggering 5,100% increase from the N37.96 million set aside for the same purpose in 2024, and it is the largest allocation for this item to date.
The increase in the budget for fueling State House generators may reflect a lack of confidence in the country’s public power infrastructure, which continues to face challenges despite years of investment. In contrast, previous years saw more modest allocations: N37.96 million in 2024 and N30.68 million in 2023.
The power sector in Nigeria has been a persistent problem, even though substantial investments have been made in the past few years. Between 2021 and 2024, Nigeria allocated N1.2 trillion to the power sector, with a focus on capital expenditures aimed at improving the country’s energy infrastructure. The budget for the power sector grew by 129.42%, from N133.479 billion in 2020 to N306.23 billion in 2022. For 2023, the government budgeted N258.494 billion for the sector, with N251.609 billion designated for capital projects.
However, despite these investments, the power supply to homes and businesses remains unreliable. Frequent blackouts have forced many businesses to turn to self-generated power, contributing to high operating costs. Some businesses have even been forced to shut down or relocate abroad due to the prohibitive cost of maintaining generators.
The situation has drawn concerns from industry groups. Recently, Olusola Obadimu, the Director General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), highlighted that businesses in Nigeria suffer a yearly loss of $29 billion due to inadequate power supply.
The power sector faces several challenges, including unreliable energy infrastructure, inadequate power supply, and high electricity tariffs. These problems not only stifle industrial growth but also hinder Nigeria’s ability to attract foreign investments and create jobs.
In the 2025 budget, the government is allocating N2.09 trillion to the Ministry of Power, with N2.08 trillion earmarked for capital projects. This funding is part of the government’s ongoing effort to address the sector’s persistent challenges, though questions remain about the effectiveness of these investments in delivering stable power to the nation.
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