The Federal Government of Nigeria is set to allocate N450 billion for power interventions in 2024, according to the budget analysis of the Nigerian Bulk Electricity Trading Company. The allocation, under the firm’s capital expenditure, is designated as ‘FGN Power Intervention Fund.’ The total expenditure for 2024 is projected to be N454.81 billion, with a significant portion earmarked for power intervention funds.
The breakdown of the expenditure includes N2.44 billion for personnel costs, N2.36 billion for other recurrent costs, N580 million for general travel and transport, N15 million for utilities, N110 million for materials and supplies, N210.75 million for general maintenance services, N34 million for other services, N60 million for fuel and lubricants, N40 million for financial charges, N576 million for miscellaneous, and N736.51 million for supplementary overhead.
This substantial allocation follows the trend of the Federal Government’s consistent intervention in the power sector. As of May 2022, the intervention fund extended to electricity distribution companies had reached N2.9 trillion. Despite these interventions, the power sector has faced challenges, including grid collapses. The House of Representatives has expressed its intention to probe all financial interventions in the power sector over the past decade.
In response to the budget allocation, the Lagos Chamber of Commerce and Industry emphasized the importance of bringing private sector investment into the transmission segment of the power sector. This move is seen as a strategy to enhance technical and financial capacity for a well-functioning sector, contributing to economic growth.
The power sector’s performance and the need for regulatory effectiveness have been ongoing concerns, prompting calls for comprehensive reviews and measures to address industry challenges.
