Chukwu Obinna 
ABUJA, Nigeria – Nigeria earmarks ₦1.096 trillion for electricity infrastructure in its 2026 federal budget, signalling renewed efforts to tackle chronic power shortages that continue to hamper economic growth and daily life.
An examination of the 2026 Appropriation Bill on Monday shows that capital electricity projects dominate the allocation, with a strong emphasis on expanding access to underserved communities nationwide.
The Rural Electrification Agency (REA) emerges as the biggest beneficiary, receiving ₦502.21 billion, nearly half of the power sector’s total capital vote. The funding targets off-grid and renewable energy solutions aimed at rural and peri-urban communities.
The Ministry of Power secures ₦416.748 billion for capital projects, alongside ₦10.379 billion for recurrent expenditure. Staff costs account for ₦6.168 billion, while administrative expenses stand at ₦4.211 billion, pushing the ministry’s total envelope above ₦1.1 trillion.
For decades, Nigeria’s electricity sector struggles with weak generation capacity, fragile transmission lines and inefficient distribution networks, leaving millions dependent on self-generated power.
The budget outlines targeted interventions, including ₦987.9 million for essential infrastructure at 38 resettlement sites affected by power projects. These include schools, solar-powered water facilities, health centres and road access.
Further allocations include ₦840 million to strengthen distribution networks across the six geopolitical zones, and ₦350 million for the rehabilitation of a 7.5MVA injection substation in Agbor, Delta State.
Despite these investments, the budget reveals heavy reliance on alternative power sources, with ₦92.9 billion allocated for electricity and diesel generators across MDAs.
About the Author
Edino Chubiyo Cornelius 
Oluwatobi Adu 