The Ministry of Power plans to allocate a significant portion of its N1.2tn 2025 budget towards financing multilateral and bilateral loan projects to enhance electricity generation and distribution nationwide.
It allocated N810bn to fulfill its funding obligations of the $1.74bn World Bank’s Power sector recovery and $2.62m Distribution Sector Recovery Programme loans to improve electricity distribution companies’ technical and financial performance. The DISREP programme seeks to install 3.2 million meters.
These initiatives will focus on improving infrastructure, increasing efficiency, and expanding access to reliable power for communities across the country, ensuring a more sustainable and robust energy system for the future.
It also proposed a sum of N269.74bn for special intervention power projects, N47.35bn for the construction of transformers and substations, and N36.82bn as counterpart funding for earmarked transmission lines and substations projects.
These details were disclosed in the line items of the power ministry’s 2025 appropriation bill analysed by our correspondent on Wednesday.
The report revealed that N585bn will be spent as additional financing for the power sector recovery operation while the DISREP will gulp N225bn.
Nigeria has been battling epileptic power supply, affecting the productivity of small businesses and manufacturers. This challenge is exacerbated by the frequent collapse of the national grid with 12 breakdowns recorded in 2024.
To resolve this recurring issue, the power minister, Adelabu Adebayo, revealed that Nigeria requires at least $10bn over the next ten years to achieve a 24-hour power supply across the country. However several underlying factors have hindered the presidential goal to generate 6,000 megawatts this year.
