2023 Budget: Buhari Allocates N239 Billion To The Power Sector

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The Buhari administration has allocated the sum of N239 billion to the power sector in the 2023 budget. According to the proposed appropriation bill, the power sector’s personnel cost is placed at N5,320,156,125.  

The overhead cost for the sector is placed at N1,565,303,188, while the capital costs are N232,620,744,832. The total allocation for the power sector is N239,506,204,145. 

It is expected that in 2023, the power sector which covers the ministry of power and its associated departments and agencies, will utilize N239,506,204,145 for staff salaries, operations, and, projects. 

See 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. 

2022 Siemens power deal implementation 

In September 2022, Nairametrics reported that two 132/33 KV 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.  

“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.  

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.  

“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. 

What you should know 

  • As of January 2022, some workers at the Niger state-based Zungeru hydropower project were shot by terrorists. Since then, there have been attacks by “bandits” and terrorists, thereby preventing much progress on the power project. As of August 2022, work was reportedly stalled on the project, which was supposed to have been commissioned by 2022.  
  • Nairametrics had earlier reported that Nigeria’s power minister, Engr. Abubakar Aliyu promised that the Buhari administration will ensure the completion of the Zungeru Hydro Plant. 
  • The Taraba state-based Kashimbila hydropower project has been completed and has been officially commissioned. The project started under the Goodluck Jonathan administration and was completed by the Buhari administration.  
  • Traders at some of the markets and trading hubs selected under the Energizing Economies Programme (EEP), under the Rural Electrification Agency (REA), have reportedly complained about the viability of the solar-powered projects, as they have been forced to switch back to generators to power their work equipment. The issue for them seems to 
  • be affordability, as they cannot afford to go beyond a certain tier, which may not be strong enough to power their activities.  
  • In the first phase of the Energizing Education Programme, the REA empowered Bayero University, Kano (BUK), Usman Danfodiyo University, Sokoto (UDUSK), Abubakar Tafawa Balewa University (ATBU), Federal University of Agriculture Makurdi, (FUAM), Nnamdi Azikiwe University (NAU) and Federal University of Petroleum Resources (FUPR) with solar-hybrid power plants.  
  • In the second phase of the Energizing Education Programme, the University of Abuja, University of Maiduguri and the University Teaching Hospital, Michael Opara University of Agriculture, Umudike, University of Calabar and the University Teaching Hospital, Federal University Gashua and the University of Agriculture, Abeokuta, will benefit. 


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