The Federal Government has proposed to spend ₦1.096 trillion on capital electricity projects in the 2026 appropriation bill.

Nigeria’s power sector has struggled for decades with inadequate generation capacity, transmission bottlenecks, and distribution inefficiencies.

According to a breakdown of data contained in the 2026 Appropriation Bill, seen by Channels Television, the Rural Electrification Agency (REA) was given the highest allocation of ₦502.21 billion.

Personnel cost was put at ₦6.168 billion and overhead at ₦ 4.211 billion, bringing the total allocation to ₦ 1.107 trillion.

The Federal Ministry of Power has ₦416.748 billion allocation for capital projects, while ₦ 10.379 billion was proposed for recurrent expenditure.

Highlight of the ministry’s headquarters allocation showed that ₦987.932 million has been earmarked for the provision of basic amenities for project-affected communities at 38 resettlement sites (schools, solar boreholes, roads, health centres), survey, and land demarcation.

It also plans to spend ₦840 million on ongoing distribution expansion programme projects to utilise the stranded power from the grid, with South South region allocated ₦ 400 million, South West ₦400 million, South East ₦ 400 million, North East ₦ 400 million, North West ₦ 400 million, and North Central ₦ 400 million.

The government will spend ₦350 million to complete the rehabilitation of 1×7.5MVA Aliameh injection substation, including supply and installation of one 7.5MVA transformer, in Agbor.

The government also plans to spend ₦280 million on the construction of a power mini-grid at Delta University, also in Agbor.

Again, in Delta State, the government will spend ₦52.5 million for the construction of a dedicated 300km 33kV line from Ughelli transmission station to the Federal University of Petroleum Resources, Effurun.