AGENCIES under the Ministry of Power budgeted millions of naira in 2025 for the fuelling of generators to provide electricity in their offices, casting doubt at the Federal Government’s promise of providing electricity to millions of homes in Africa’ most populous nation.
The Nigerian Electricity Management Services (NEMSA), one of the agencies under the Ministry of Power, set aside N12 million to buy fuel for its generators, while the National Power Training Institute budgeted N10 million for the same purpose.
Similarly, the National Electricity Liability Management Limited (NELMCO) will spend N5.123 million on generator fuel. However, the Transmission Company of Nigeria, another agency under the Ministry of Power, did not specifically mention fuel in its budget but set money aside for the “construction/provision of electricity.” Incidentally, it earmarked N270.484 billion for this item. Financial analysts say the amount also captures the cost of petrol and other projects of the agency.
NELMCO was created in 2006 to ensure the success of the electricity sector reform. It is aimed to administer the stranded debts and non-core assets of the defunct Power Holding Company of Nigeria (PHCN) pursuant to the provisions of the Electricity Power Sector Reform (EPSR) Act of 2005. It also holds the non-core assets of PHCN, sells or disposes of or deals in any manner for the purpose of financing the payment of debts or other related matters.
This agency budgeted N630 million for vehicles and N69.2 million for “verification of non-core assets.” NELMCO also set aside N55.336 million for “carrying out verification exercise of invoices of PHCN liabilities.” In other words, to verify the invoices of PHCN liabilties, the agency intends to spend N55.336 million.
More so, this little-known government agency set aside N29.004 million to engage vendors to scan and archive documents. It will likewise spend N44 million to engage external auditors and N228.976 million for travels.
Similarly, the National Power Training Institute plans to spend N50 million to monitor capital projects and N70 million to organise a workshop for power sector staholders.
Moreover, NEMSA plans to spend N210 million on vehicles and N59 million for the “establishment of an eco systems of ICT solutions for NEMSA.” It also set aside N50 million for the “enlightenment campaign for legislators, judiciary, governing board and other key stakeholders on technical standards and regulations on mandate, roles & activities of NEMSA.”
The REA, on the other hand, budgeted N300.736 million for “monitoring and evaluation of projects.” The agency also claims that it is spending N500 million for the “supervision and commissioning of projects in southern zone.” It equally earmarked N362.240 million for travels and N102.732 million for maintenance services.
Analysts weigh in
Energy and financial analysts have expressed divergent views about the expenditure of the agencies under the Ministry of Power. An Abuja-based accountant, Ms Adaeze Lori, noted that the agencies’ spend on generator fuel is an indictment on the Ministry of Power.
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“You see, this shows that we don’t do what we say. If agencies under the Ministry of Power could be buying generator fuel, then they are telling Nigerians that they have no solution to the electricity problem. Years ago, the Ministry of Power used to have annual budgets for generator fuel; they only stopped recently when the media piled pressure on them,” Ms Lori said.
“It now shows that we do not do what we say but want others to do what we say. I have looked at the budget and noticed that there was even no budget for solar or other forms of renewable energy for their in-house use. How then do you continue to campaign the use of renewable energy when you are not showing an example and leading the pack?” she asked.
An Abuja-based power sector analyst, Dr Abu Illyasu, said the Ministry of Power and its agencies should have nothing to do with fuel or generator of any type.
“I agree that they need to start jettisoning the idea of budgeting for fuel or generators. I expect them to budget for solar or every other type of energy source. Their budgets on fuel may be small, but they are sending a wrong message to Nigerians and the international community that they do not do what they say,” he said.
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A finance analyst, who does not want his name mentioned, wondered why issues like enlightment campaigns or budget monitoring should be gulping upwards of N50 million, noting that REA’s N300.736 budget “is an anomaly.”
