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2023 Budget: President Mohammed Buhari Allocates N239B To The Power Sector

2023 Budget: President Mohammed Buhari Allocates N239B To The Power Sector

2023 Budget: President Mohammed Buhari Allocates N239B To The Power Sector

2023 Budget: President Mohammed Buhari Allocates N239B To The Power Sector

The 2023 budget, under the Buhari government, includes N239 billion for the electrical sector. The proposed allocation bill places the staff cost for the electricity sector at N5,320,156,125.

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The sector’s total costs are estimated to be N1,565,303,188 for overhead and N232,620,744,832 for capital. N239,506,204,145 is the overall allotment for the power sector.

The power industry, which includes the ministry of electricity and its related departments and organizations, is anticipated to spend N239,506,204,145 on personnel wages, operations, and projects in 2023.

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See A Breakdown Of Proposed Allocations To MDAs In The Power Sector:

 

MDA  Personnel  Overhead  Capital  Total Allocation 
Federal Ministry of Power  N908,890,365  N265,770,369  N161,533,573,457  N162,708,234,191 
         
National Rural Electrification Agency  N1,182,347,779  N242,542,899  N43,043,815,786  N44,468,706,464 
         
Nigerian Electricity Management Services Agency  N2,009,968,823  N588,205,562  N1,166,785,473  N3,764,959,858 
         
National Power Training Institute  N922,674,544  N195,033,892  N224,523,649  N1,342,232,085 
         
Nigeria Electricity Liability Management Limited  N296,274,614   N273,750,466  N387,406,908  N957,431,988 
         
Transmission Company of Nigeria  NIL  NIL  N26,264,639,559  N26,264,639,559 

During his budget speech presentation on October 7, President Buhari said his government has invested over $2bn in Nigeria’s transmission grid through bespoke intervention programs like the Siemens Power Program. According to him, his administration has transformed Nigeria’s power sector. 

2023 Budget: President Mohammed Buhari Allocates N239B To The Power Sector

2022 Siemens Power Deal Implementation 

In September 2022, Nairametrics reported that two 132/33 VK mega transformers to be used for the execution of the Nigeria-Siemens power deal, arrived in the country on September 9, for installations. Nigeria’s power minister, Engr. Abubakar Aliyu had earlier announced that various equipment under the Siemens power deal will arrive in the country from September 2022 to May 2023.  

On National Mass Metering 

Buhari said: “We have leveraged billions of US dollars in concessional and other funds from our partners at the World Bank (WB), International Finance Corporation (IFC), African Development Bank (AfDB), Japan International Cooperation Agency (JICA), as well as through the Central Bank of Nigeria (CBN), working with the Finance Ministry, to support the power sector reforms.  

ALSO, READ Central Bank of Nigeria Asks Court To Freeze 157 Accounts Of Companies In Power Sector

“The Central Bank has also been impactful in its interventions to roll out over a million meters to on-grid consumers, creating much-needed jobs in assembly and installation”.  

Last month, Nairametrics reported that out of the 12.78 million registered energy customer population, 4.77million (37.3% of identified power customers) were metered, leaving the unmetered population at 8.01million customers (62.7% of registered power customers). This is according to September 2021 data from the Nigerian Electricity Regulatory Commission (NERC). As of today, out of the registered power customers in the country, 8.01 million customers still need to be metered.  

2023 Budget: President Mohammed Buhari Allocates N239B To The Power Sector

On The Nigeria Electricity Liability Management Company 

Buhari said: “Our financing interventions have recently been complemented with the takeover of four electricity distribution companies and the constitution of the Board of the Nigeria Electricity Liability Management Company.”  

The Nigeria Electricity Liability Management Company was established in 2006 to ensure the liberalization of Nigeria’s power sector. The Board was inaugurated to resolve the liabilities relating to tariff shortfalls for power distribution companies (DisCos) in the country. As of August 2022, the Federal Government took over the Kaduna, Kano, Ibadan, and Port Harcourt DisCos. 

On Power Generation 

Buhari said: “On the generation side, we have made significant investments in an incremental 4,000MW of power generating assets, including Zungeru Hydro, Kashimbila Hydro, Afam III Fast Power, Kudenda Kaduna Power Plant, the Okpai Phase 2 Plant, the Dangote Refinery Power Plant, and others.  

“Our generation efforts are making the transition from a reliance on oil and diesel to gas as a transitional fuel, as well as environmentally friendly solar and hydro sources.  

ALSO, READ GAUTAM ADANI– Biography, Age, Family, Net-worth & Businesses

“Under the Energizing Education Programme, we have commissioned solar and gas power solutions at Federal Universities and Teaching Hospitals in Kano, Ebonyi, Bauchi, and the Delta States. Similarly, our Energizing Economies Programme has taken clean, sustainable power solutions to the Sabon-Gari Market in Kano, Ariaria Market in Aba, and Sura Shopping Complex in Lagos. 


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