The Ministry of Power has unveiled plans to allocate a substantial portion of its proposed N1.2 trillion 2025 budget to multilateral and bilateral loan projects aimed at boosting electricity generation and distribution across the nation.
The move is expected to address Nigeria’s long-standing challenges with power supply, infrastructure inefficiencies, and grid stability.
Key among the allocations is N810 billion to fulfill financial commitments for the World Bank’s $1.74 billion Power Sector Recovery Programme and $2.62 million Distribution Sector Recovery Programme (DISREP).
The DISREP aims to install 3.2 million meters nationwide to enhance the technical and financial performance of electricity distribution companies.
The 2025 budget also includes significant funding for special intervention power projects.
A total of N269.74 billion is proposed for various projects, with N47.35 billion earmarked for constructing transformers and substations.
Another N36.82 billion has been allocated as counterpart funding for key transmission lines and substations.
Among the detailed projects are:
Zungeru Transmission Line: N36.26 billion for counterpart funding.
Gwiwa Solar Project: N10 million for a 50-megawatt grid-connected solar facility in Jigawa State.
Presidential Power Initiative: N150 billion for funding the initiative to stabilize the national grid.
Mini-Grids for Institutions: N24 billion to establish mini-grids in federal and state polytechnics nationwide.
Frequent collapses of the national grid, with 12 incidents recorded in 2024 alone, have left Nigeria grappling with unreliable power supply.
This has significantly impacted businesses, especially small enterprises and manufacturers.
Power Minister Adelabu Adebayo emphasized the need for substantial investment to overhaul the sector, stating that Nigeria requires $10 billion over the next decade to ensure a 24-hour power supply nationwide.
“Achieving stable electricity is pivotal for national development, but persistent hurdles have slowed progress,” he said.
The budget outlines further expenditures to bolster power infrastructure and public awareness, including:
N25 billion for completing priority projects under the Transmission Company of Nigeria.
N36 billion for distribution interventions, including transformer upgrades and cabling replacements.
N24.7 billion for installing solar-powered streetlights along major highways.
N8.1 billion for public advocacy against power asset vandalization.
The government plans to collaborate with international partners, allocating N85 million for grant aid counterpart funding and N160 million for bilateral projects under organizations such as the International Solar Alliance (ISA) and ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE).
While these ambitious projects signal a commitment to addressing Nigeria’s energy crisis, analysts note that effective implementation and accountability will be critical to achieving sustainable improvements.