Federal Ministries, Departments, and Agencies (MDAs) in Nigeria are set to spend approximately N40.81 billion on fuel to power their generators in 2025, according to an analysis by The PUNCH. This expenditure, listed under generator fuel costs in the 2025 appropriation budget, underscores the ongoing power supply challenges in the country.
Nigeria has faced persistent electricity shortages due to problems with power generation and transmission. In 2024 alone, the country’s national grid collapsed 12 times. As a result, many government agencies and private businesses depend on alternative energy sources, such as generators, to maintain operations.
The Manufacturers Association of Nigeria (MAN) reported that its members spent N238.31 billion on alternative energy sources in the first half of 2024, marking a 7.69% increase from the second half of 2023. MAN attributed the rise in energy costs to higher prices for diesel, gas, and other energy sources, as well as the growing need for manufacturers to invest in self-powered solutions due to unreliable electricity from the national grid.
In October, Minister of Power, Adebayo Adelabu, stated that electricity supply had improved, which he claimed reduced Nigerians’ reliance on petrol for generators. However, analysts have disagreed with this view, noting that small businesses and manufacturers continue to bear the brunt of the unstable power supply.
In response to the ongoing energy crisis, the House of Representatives’ Committee on Renewable Energy has called on the government to adopt renewable energy solutions across its Ministries, Departments, and Agencies. The committee believes this shift could reduce the country’s energy expenditure and help alleviate the financial burden on the national budget.
