In the upcoming fiscal year, the Nigerian government plans to allocate a substantial N450 billion for power interventions, as revealed in the budget analysis conducted by the Nigerian Bulk Electricity Trading Company.
This significant investment is earmarked under the firm’s capital expenditure as the ‘FGN Power Intervention Fund.’
The Government Owned Enterprise anticipates a total expenditure of N454.81 billion in 2024.
The breakdown includes N2.44bn for personnel costs, N2.36 billion for other recurrent costs, N580m for general travel and transport, N15m for utilities, N110m for materials and supplies, N210.75m for general maintenance services, N34m for other services, N60m for fuel and lubricants, N40m for financial charges, N576m for miscellaneous, and N736.51m for supplementary overhead.
A substantial portion of the allocated funds is dedicated to addressing power-related challenges.
Notably, as of May 2022, the Federal Government’s intervention fund for electricity distribution companies had risen to N2.9 trillion, encompassing the total financial support extended to the sector since its privatization in 2013.
Despite these financial injections, the power sector has faced persistent challenges, including grid collapses.
In response, the House of Representatives, as of October 2023, expressed its intention to probe over $1.25 billion injected into the power sector by the Federal Government since the 2013 privatization.
Citing concerns about the performance and transparency of Distribution Companies (DISCOs) and the regulatory authority’s inability to sanction erring stakeholders, a member of the House of Representatives, Ademorin Kuye, highlighted the need for a thorough investigation.
In a New Year statement, the Lagos Chamber of Commerce and Industry emphasized the importance of private sector investment in the transmission segment of the power sector to enhance its efficiency and contribute to economic growth.
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