By Obas Esiedesa, Abuja
ABUJA — The Federal Government has proposed a total of N1.096 trillion for the execution of capital projects in the power sector in the 2026 Appropriation Bill, with the Rural Electrification Agency (REA) receiving the highest allocation of N502.21 billion.
Details of the proposal show that the Federal Ministry of Power, under the supervision of Chief Adebayo Adelabu, has been allocated N416.748 billion for capital projects.
In addition, the government proposed N10.379 billion for recurrent expenditure in the power sector, comprising N6.168 billion for personnel costs and N4.211 billion for overheads, bringing the total allocation to N1.107 trillion.
A breakdown of the Ministry’s headquarters allocation indicates that N987.932 million has been earmarked for the provision of basic amenities for project-affected communities across 38 resettlement sites. These include schools, solar-powered boreholes, access roads, health centres, as well as survey and land demarcation works.
The Federal Government also plans to spend N840 million on ongoing distribution expansion programme projects aimed at utilising stranded power from the national grid. Under the proposal, N400 million each is allocated to the South-South, South-West, South-East, North-East, North-West and North-Central geopolitical zones.
Further allocations include N280 million for the construction of a power mini-grid at Delta University, Agbor. Also in Delta State, N52.5 million has been proposed for the construction of a dedicated 300km 33kV power line from the Ughelli Transmission Station to the Federal University of Petroleum Resources, Effurun.
The budget proposal also provides N350 million for the completion of the rehabilitation of the 1×7.5MVA Aliameh Injection Substation in Agbor, including the supply and installation of a 7.5MVA transformer.
The proposed allocations underscore the Federal Government’s focus on expanding electricity access, strengthening power infrastructure and improving reliability across the country in the 2026 fiscal year.
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