Electricity: FG proposes N1.096trn for capital projects in 2026 budget

•REA tops with N502bn

The federal government has provided N1.096 trillion to execute capital projects in the 2026 appropriation bill, with the Rural Electrification Agency, REA, given the highest allocation of N502.21 billion.

The Federal Ministry of Power, overseen by Chief Adebayo Adelabu, has N416.748 billion allocation for capital projects.

The government proposed N10.379 billion on recurrent expenditure, with personnel cost at N6.168 billion and overhead at N4.211 billion, bringing the total allocation to N1.107 trillion.

Highlight of the ministry’s headquarters allocation showed that N987.932 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 N840 million on ongoing distribution expansion programme projects to utilise the stranded power from the grid with South South region allocated N400 million, South West N400 million, South East N400 million, North East N400 million, North West N400 million, and North Central N400 million.
The government also plans to spend N280 million in the construction of power mini-grid at Delta University, Agbor.

Also in Delta State, the government plans to spend N52.5 million for the construction of dedicated 300km 33kV line from Ughelli transmission station to the Federal University of Petroleum Resources, Effurun.

The government will spend N350 million to complete the rehabilitation of 1×7.5MVA Aliameh injection substation including supply and installation of one 7.5MVA transformer also in Agbor.