In 2024, the Nigerian Federal Government plans to allocate a staggering N450 billion towards power subsidies and interventions, as revealed by an in-depth analysis of the 2024 Nigerian Bulk Electricity Trading Company budget under the ‘FGN Power Intervention Fund’.
The total government expenditure for 2024 is projected to reach N454.81bn, with a breakdown that sheds light on the allocation of funds. Notably, N2.44 billion is earmarked for personnel costs, while N2.36 billion is allocated for other recurrent costs. Additionally, N580 million is set aside for general travel and transport, N15 million for utilities, N110m for materials and supplies, N210.75m for general maintenance services, N34 million for other services, N60 million for fuel and lubricants, N40 million for financial charges, N576 million for miscellaneous expenses, and N736.51 million for supplementary overhead.
The Daily Post reported that in the third quarter of 2023, the Federal government had already spent a considerable N204.56 billion on electricity subsidies, as reported by the Nigerian Electricity Regulatory Commission. This amount adds to the N375.8 billion spent on electricity subsidies from January to September of the same year.
The Minister of Power, Adebayo Adelabu, has staunchly upheld the necessity of the electricity subsidies, countering calls from certain stakeholders for tariff hikes in the Nigeria Electricity Supply Industry. The government’s substantial financial commitment to electricity interventions and subsidies underscores the ongoing efforts to address and improve the country’s power sector.
