FG Allocates ₦751.7 Billion for Cables, Wires, Transformers, Other Power Infrastructure Despite Privatisation

FG Allocates ₦751.7 Billion for Power Infrastructure Despite Privatisation

The Nigerian government plans to invest ₦751.7 billion in the power sector, focusing on cables, transformers, and electricity poles, as outlined in the 2025 budget.

This initiative aims to enhance transmission and distribution infrastructure, addressing ongoing challenges in the Nigerian Electricity Supply Industry (NESI).

The Ministry of Power’s 2025 budget exceeds ₦2 trillion, with notable allocations including:

• ₦585 billion for the Power Sector Recovery Operation (PSRO-AF) programme, funded through multilateral and bilateral loans.
• ₦25 billion to complete priority projects of the Transmission Company of Nigeria (TCN), enhancing electricity transmission.
• ₦36 billion for transformer installations, cables, and electricity pole replacements across Nigeria’s six geopolitical zones.
• ₦30 billion for solar home systems and rural street lighting under the “Renewed Hope Light Up Rural Areas” initiative.
• ₦24 billion for mini-grid interventions at federal and state polytechnics.
• ₦8 billion for maintaining existing mini-hydro projects, mini-grids, and solar home systems.
• ₦8 billion for advocacy and orientation on preventing vandalism of power assets.
• ₦24.7 billion for solar-powered street lights on major highways across the six geopolitical zones.

Additionally, ₦11 billion is allocated for constructing a 100MVA 132/33KV substation in Ila-Orangun, Osun State, and ₦504.4 million is designated for settling legacy debts owed to contractors.

Despite previous investments and loans from institutions like the World Bank and African Development Bank, the desired improvements in Nigeria’s power sector have been limited.

In related developments, former Minister of Power Saleh Mamman faced legal challenges over allegations of mismanaging more than ₦33 billion during his tenure.

This substantial investment reflects the government’s commitment to addressing persistent issues in the power sector, aiming to provide more reliable electricity to Nigerians.

However, the effectiveness of these allocations will depend on transparent implementation and efficient management to ensure tangible improvements in the nation’s electricity supply.

For a closer look at Nigeria’s manufacturing capabilities in the power sector, you might find the following video informative: