FG plans N92.9 billion for electricity, diesel in 2026 budget amid unreliable power supply
The Federal Government plans to spend N92.9 billion on electricity and diesel across ministries, departments, and agencies (MDAs) in 2026, according to data from the 2026 Appropriation Bill. The allocations highlight the continued strain of Nigeria's unreliable power supply on public finances, with MDAs budgeting heavily for grid electricity and diesel-powered alternatives to sustain operations despite ongoing power sector reforms.
The Ministry of Defence leads electricity allocations with N16.16 billion for military bases and operational facilities nationwide. The Federal Ministry of Health and Social Welfare follows with N9.43 billion, largely driven by power requirements of teaching hospitals and federal medical centres, while the Federal Ministry of Education receives N8.23 billion for federal universities, colleges of education, and unity schools.
On diesel spending, the Ministry of Health tops the list at N8.29 billion, followed by Defence at N6.6 billion and Education at N5.75 billion. The Office of the Secretary to the Government of the Federation, the National Security Adviser, and Foreign Affairs together account for over N3.6 billion. Smaller agencies including the Code of Conduct Tribunal and Police Service Commission also made diesel provisions.
The scale of energy spending reinforces fiscal concerns about Nigeria's persistent power challenges, with MDAs planning for power shortfalls rather than relying on stable grid supply. This follows the 2025 Presidential Power Sector Debt Reduction Programme bond, yet grid reliability remains weak, especially for large public institutions. Previous analyses show rising diesel and energy-related recurrent expenditure across MDAs, demonstrating slow structural improvement in electricity supply.