The Nigerian federal government has put forth a significant proposal for the 2026 fiscal year, allocating N1.096 trillion towards capital projects within the electricity sector. This substantial investment aims to drive development and expansion across the nation’s power infrastructure, with a particular focus on rural electrification. The Rural Electrification Agency (REA) stands to receive the largest share, a notable N502.21 billion, underscoring the government’s commitment to bringing power to underserved areas. The Federal Ministry of Power, under the stewardship of Chief Adebayo Adelabu, has also been earmarked for substantial funding, with N416.748 billion designated for its capital expenditure plans.
The proposed budget outlines a total allocation of N1.107 trillion for the electricity sector, encompassing N10.379 billion for recurrent expenditure. This includes N6.168 billion for personnel costs and N4.211 billion for overhead expenses, ensuring the operational continuity of the agencies involved.
What is the total proposed budget for capital projects in the electricity sector for 2026? The total proposed budget for capital projects in the electricity sector for 2026 is N1.096 trillion, with the Rural Electrification Agency receiving the largest allocation.
Key initiatives within the Ministry of Power’s headquarters budget include N987.932 million dedicated to the provision of basic amenities for communities affected by resettlement projects. This funding will support the development of essential infrastructure such as schools, solar boreholes, roads, and health centers across 38 resettlement sites, including crucial survey and land demarcation activities.
Furthermore, the government plans to invest N840 million in ongoing distribution expansion program projects. The objective of these projects is to effectively utilize power that is currently stranded within the national grid. This funding will be distributed across various regions, with the South South, South West, South East, North East, North West, and North Central zones each receiving N400 million for these endeavors.
How to improve electricity distribution in Nigeria? Improving electricity distribution in Nigeria involves significant investment in infrastructure, including expansion programs to utilize stranded power from the grid and the construction of new mini-grids and transmission lines.
The budget also details specific projects aimed at enhancing power supply. For instance, N280 million is allocated for the construction of a power mini-grid at Delta University in Agbor. Additionally, N52.5 million is earmarked for the construction of a dedicated 300km 33kV line connecting the Ughelli transmission station to the Federal University of Petroleum Resources in Effurun, Delta State.
Is investing in Nigeria’s electricity sector a good idea? Investing in Nigeria’s electricity sector is a strategic move given the significant unmet demand and the government’s commitment to capital projects aimed at improving generation, transmission, and distribution infrastructure.
The rehabilitation of existing infrastructure is also a priority, with N350 million set aside for the completion of the Aliameh injection substation. This project includes the supply and installation of a new 7.5MVA transformer, further bolstering power supply capabilities in Agbor.
Electricity vs. Gas: Which is a better energy source for Nigeria? Both electricity and gas have roles in Nigeria’s energy mix. While electricity aims to expand coverage, gas is crucial for power generation and industrial use, and the optimal choice depends on specific applications and infrastructure availability.
The proposed capital expenditure for 2026 signals a robust plan to address the persistent challenges in Nigeria’s power sector, aiming for greater reliability and wider access to electricity.
Best electricity projects for Nigeria in 2026? The best electricity projects for Nigeria in 2026 will likely focus on rural electrification, grid expansion, and the development of mini-grids to serve unserved populations, alongside substation rehabilitation.
Nigeria electricity news today points to a substantial government commitment to infrastructure development in the sector, with the 2026 budget proposal indicating a strong focus on capital projects.
Rural Electrification Agency guide outlines plans for significant investment in bringing power to remote areas through various projects funded by the proposed 2026 budget.
What is the role of the Rural Electrification Agency (REA)? The Rural Electrification Agency (REA) plays a crucial role in implementing government policies and programs aimed at providing electricity access to rural communities across Nigeria, often through off-grid solutions and grid extension projects.
Electricity Nigeria budget update highlights the proposed N1.096 trillion for capital projects, signaling a major push for infrastructure development in the coming fiscal year.
Best electricity plan for Nigeria 2026 involves a multi-pronged approach, including grid modernization, renewable energy integration, and targeted rural electrification initiatives.
The substantial budgetary allocation for capital projects in the electricity sector for 2026 demonstrates a clear intent to transform the nation’s power landscape and stimulate economic growth through improved energy access.
