The federal government has earmarked N1.096 trillion for capital projects in the 2026 budget, with the Rural Electrification Agency (REA) receiving the highest allocation of N502.21 billion
According to the proposed budget, the Federal Ministry of Power, led by Chief Adebayo Adelabu, will get N416.748 billion for capital projects.
Recurrent expenditures were projected at N10.379 billion, including personnel costs of N6.168 billion and overheads of N4.211 billion, bringing the total ministry allocation to N1.107 trillion.
The ministry plans to spend N987.932 million on providing basic amenities for communities affected by projects across 38 resettlement sites, covering schools, solar-powered boreholes, roads, and health centres, as well as survey and land demarcation activities.
In a bid to optimise grid capacity, the government will also inject N840 million into ongoing distribution expansion programmes, with N400 million each allocated to the six geopolitical zones. Specific projects include:
N280 million for a mini-grid at Delta University, Agbor.
N52.5 million for a dedicated 300km, 33kV line from Ughelli transmission station to the Federal University of Petroleum Resources, Effurun.
N350 million for the rehabilitation of Aliameh injection substation (1×7.5MVA), including the supply and installation of a 7.5MVA transformer in Agbor.
The allocations come amid growing concerns over power shortages, particularly in northern Nigeria, where frequent blackouts continue to disrupt businesses and households.
The 2026 budget reflects the federal government’s push to expand electricity access, improve distribution networks, and strengthen the nation’s power infrastructure. However, analysts have warned that timely release of funds and effective project execution remain critical to achieving these goals.
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