In 2024, the Federal Government plans to spend N450 billion on power initiatives. According to the Nigerian Bulk Electricity Trading Company’s budget study. The firm’s capital expenditure projected N450bn for the ‘FGN Power Intervention Fund.’
In 2024, the Government Owned Enterprise planned to spend a total of N454.81 billion. N2.44 billion will be spent on personnel costs, N2.36 billion on other recurring costs, N580 million on general travel and transportation, N15 million on utilities, N110 million on materials and supplies, N210.75 million on general maintenance services, N34 million on other services, N60 million on fuel and lubricants, N40 million on financial charges, N576 million on miscellaneous, and N736.51 million on supplementary overhead.
In the coming year, the majority of the firm’s spending would be on power intervention funds. The Federal Government’s intervention fund for energy distribution companies had grown to N2.9 trillion as of May 2022.
According to a report in The PUNCH, N2.9 trillion is the entire financing granted to the sector since its privatization in 2013. The federal government has always intervened in the power sector.
In 2017, the Federal Executive Council granted N701 billion as a Power Assurance Guarantee for the Nigeria Bulk Electricity Trading Company to pay generation firms for two years. In 2019, the government announced another N600 billion intervention in the power sector. In 2019, the market operator, Nigerian Transmission Company,
“At this point, I’ll tell you that it’s for the market,” Edmond Eje said. “If money is put into Gencos, it is for the market; if money is put into Discos, it is for the market” He added
As of October 2023, the House of Representatives indicated that it planned to investigate all federal government financial actions in the power sector during the previous ten years. It stated that the inquiry would include more than $1.25 billion in government investment in the sector since its privatization in 2013.
While moving the motion, Ademorin Kuye (APC, Lagos) of the House of Representatives stated, “The Nigeria Electricity Regulatory Commission’s performance as an industry regulator is questioned for its ability to move the industry forward and eliminate illiquidity.”
The Lagos Chamber of Commerce and Industry stated in its New Year’s statement that integrating private sector investment into the electricity sector’s transmission section will assist enhance the sector. “The government should consider bringing private sector investment into the power transmission segment,” it stated. This would assure sufficient technical and financial capabilities for a well-functioning power economic sector.
