THE GUARDIAN
• Govt votes more money for investment in TCN, DisCos
• Power ministry to spend N8b to create awareness on vandalism
• Benin, Togo, Niger import N64.7b electricity from Nigeria, owe debts
• Ajaokuta Steel faces disconnection over persistent debt
The President Bola Tinubu administration, through the Ministry of Power, has proposed spending a substantial N751.7 billion on new projects in the privatised power sector. These projects include procuring cables, transformers, and electricity poles.
This proposal, captured in the 2025 budget, aims to improve transmission and distribution infrastructure despite the limited success of previous loans to address challenges in the Nigerian Electricity Supply Industry (NESI).
The ministry plans to spend over N2 trillion in 2025, with N8 billion earmarked for creating awareness about vandalism. For context, the N8 billion allocated for awareness could renovate over 100 dilapidated schools, each receiving about N85 million.
By comparison, Katsina State renovated 100 secondary schools last year for N8.4 billion, while Kano State announced a N6 billion plan to renovate all primary schools in the state in January 2024.
The proposed budget includes N585 billion for the Power Sector Recovery Operation (PSRO-AF) programme as partial multilateral/bilateral loan funding. An additional N25 billion is allocated to complete priority projects of the Transmission Company of Nigeria (TCN) to enhance electricity transmission.
In the distribution segment, the ministry plans to spend N36 billion on transformer installations, cables, and electricity pole replacements across Nigeria’s six geopolitical zones.
Another N30 billion is set aside for solar home systems and rural street lighting under the “Renewed Hope Light Up Rural Areas” initiative, while N24 billion is allocated for mini-grid interventions at federal and state polytechnics.
Maintaining existing mini-hydro projects, mini-grids, and solar home systems will cost N8 billion. Similarly, advocacy and orientation on vandalism of power assets and projects will also require N8 billion. For highway safety and visibility, N24.7 billion is allocated for solar-powered street lights on major highways across the six geopolitical zones.
Meanwhile, N11 billion has been set aside for constructing a 100MVA 132/33KV substation in Ila-Orangun, Osun State. The government also plans to pay N504.4 million in legacy debts owed to contractors.
Despite consistent investment in the electricity sector, including funds borrowed from the World Bank, African Development Bank, and other multilateral donors, the anticipated results remain elusive.
Last July, Saleh Mamman, a former Minister of Power, collapsed in a Federal High Court in Abuja while being arraigned on allegations of mismanaging more than N33 billion during his tenure.
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