FG Allocates N1.096trn for Electricity Capital Projects in 2026 Budget

The Federal Government has proposed N1.096 trillion for electricity-related capital projects in the 2026 budget, with the Rural Electrification Agency (REA) receiving the largest share of N502.21 billion.

The Federal Ministry of Power, headed by Chief Adebayo Adelabu, has been allocated N416.748 billion for its capital projects. The budget also provides N10.379 billion for recurrent expenditure, including N6.168 billion for personnel costs and N4.211 billion for overheads, bringing the ministry’s total allocation to N1.107 trillion.

Highlights of the ministry’s headquarters allocation include:

• N987.932 million for basic amenities at 38 resettlement sites, covering schools, solar boreholes, roads, health centres, surveys, and land demarcation.
• N840 million for ongoing distribution expansion programs to utilize stranded power from the national grid, with N400 million each allocated to the South South, South West, South East, North East, North West, and North Central regions.
• N280 million for the construction of a power mini-grid at Delta University, Agbor.
• N52.5 million for a 300km 33kV dedicated line from Ughelli Transmission Station to the Federal University of Petroleum Resources, Effurun.
• N350 million to complete the rehabilitation of the 1×7.5MVA Aliameh injection substation, including the supply and installation of a 7.5MVA transformer in Agbor.

These allocations form part of the government’s broader plan to expand electricity access, enhance grid utilization, and boost rural electrification across Nigeria.

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