FG plans N450bn power intervention fund

In 2024, the Federal Government of Nigeria is planning to allocate a budget of N450 billion for power interventions, as revealed in a budget analysis by the Nigerian Bulk Electricity Trading Company.

This allocation is categorized under the firm’s capital expenditure. The Government Owned Enterprise’s total planned expenditure for 2024 amounts to N454.81 billion.informationguidenigeria

The breakdown of the budget includes:

Personnel costs: N2.44 billion
Other recurrent costs: N2.36 billion
General travel and transport: N580 million
Utilities: N15 million
Materials and supplies: N110 million
General maintenance services: N210.75 million
Other services: N34 millionJAMB Portal
Fuel and lubricants: N60 million
Financial charges: N40 million
Miscellaneous: N576 million
Supplementary overhead: N736.51 million

Notably, a significant portion of the firm’s expenditure in 2024 is allocated to power intervention funds. As of May 2022, the Federal Government’s intervention fund for electricity distribution companies had risen to N2.9 trillion.

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This substantial amount reflects the ongoing commitment of the Federal Government to support and intervene in the power sector, which has been a consistent priority since the privatization of the sector in 2013. In 2017, the Federal Executive Council approved N701 billion as a Power Assurance Guarantee for the Nigeria Bulk Electricity Trading Company to facilitate payments to generation firms over a two-year period.

In 2019, the government announced that the power sector was going to get another intervention of N600bn. In 2019, the Market Operator, Transmission Company of Nigeria, Edmond Eje, stated, “At this stage I’ll tell you that it is for the market. If the money is injected into the Gencos, it is for the market; if it is injected into the Discos, it is for the market. It is generally for the shortfall in the payment of monthly invoices.”NYSC Portal

A House of Rep member, Ademorin Kuye (APC, Lagos), said while moving the motion, “The Nigeria Electricity Regulatory Commission performance as an industry regulator is questioned for its ability to move the industry forward and eliminate illiquidity.JAMB Result

“The Nigeria Electricity Supply Industry faces threat due to the poor performance and transparency of DISCOs and the NERC’s inability to sanction erring stakeholders.”

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