The Nigerian Bulk Electricity Trading Plc has disclosed that only N60 million was released from the N858 billion appropriated in the 2025 budget to bridge the electricity tariff shortfall, deepening concerns over the financial stability of the power sector.
The Acting Managing Director of the agency, Johnson Akinnawo, made the revelation on Thursday during the 2025 budget performance review and defence of the 2026 proposal before the Senate Committee on Finance chaired by Niger East senator, Sani Musa.
NBET, which was established to purchase electricity from generation companies and sell to distribution companies while guaranteeing payments to GenCos, said the paltry release has worsened its debt exposure and weakened its ability to stabilise the electricity market.
Akinnawo told lawmakers that although N858 billion was appropriated in the 2025 capital budget to bridge the tariff gap and settle outstanding obligations to generation companies, only N60 million was released.
“Only N60 million was released,” he said, noting that the amount could not even be utilised due to procurement constraints.
He warned that the persistent gap between generation costs and approved tariffs remains substantial, stressing that without timely government intervention, the electricity market cannot remain stable.
According to him, non-cost-reflective tariffs and chronic underfunding continue to undermine the viability of the sector, leaving NBET unable to effectively meet its payment obligations to power generation firms.
The disclosure drew concern from members of the committee, who observed that inadequate capitalisation has significantly constrained the agency’s capacity to discharge its stabilising mandate in the electricity value chain.
Musa expressed worry over the widening financial strain in the sector and hinted that the committee may recommend a review of the current tariff regime or consider alternative funding mechanisms to prevent a systemic collapse.
Responding, Akinnawo said NBET’s management had engaged the Budget Office and the Ministry of Finance over the non-release of the funds, describing insufficient capitalisation as a major structural challenge.
He cautioned that without adequate funding support, the agency’s ability to stabilise the electricity market would remain severely limited, with direct implications for power supply across the country.
The committee directed NBET to submit a comprehensive proposal outlining its funding requirements and strategic plan to tackle structural inefficiencies in the sector, as part of its consideration of the 2026 budget estimates.
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