The Federal Government plans to allocate ₦1.096 trillion for capital projects in the power sector under the 2026 Appropriation Bill, aiming to tackle decades-long challenges of inadequate generation, transmission bottlenecks, and distribution inefficiencies.
Data from the bill, shows that the Rural Electrification Agency (REA) received the largest share, with ₦502.21 billion earmarked for expanding electricity access in underserved communities.
The bill also allocates ₦416.748 billion to the Federal Ministry of Power for capital projects and ₦10.379 billion for recurrent expenditure. Personnel costs were set at ₦6.168 billion, with overhead costs of ₦4.211 billion, bringing total electricity sector funding to ₦1.107 trillion.
A breakdown of the ministry’s headquarters allocation revealed that ₦987.932 million is earmarked for providing basic amenities for project-affected communities across 38 resettlement sites, including schools, solar boreholes, roads, and health centres, alongside survey and land demarcation.
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The government also plans ₦840 million for ongoing distribution expansion projects to utilise stranded power from the grid. The allocations are evenly spread across regions, with ₦400 million each for the South-South, South-West, South-East, North-East, North-West, and North-Central regions.
Other key projects include:
- ₦350 million for the completion of the 1×7.5MVA Aliameh injection substation in Agbor, including supply and installation of a 7.5MVA transformer.
- ₦280 million for the construction of a power mini-grid at Delta University, also in Agbor.
- ₦52.5 million for the construction of a dedicated 300km 33kV line from Ughelli transmission station to the Federal University of Petroleum Resources, Effurun in Delta State.
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