The Federal Government has earmarked ₦1.096 trillion for the execution of capital projects in the power sector under the 2026 Appropriation Bill, with the Rural Electrification Agency (REA) receiving the highest allocation of ₦502.21 billion.
The Federal Ministry of Power, under the supervision of Chief Adebayo Adelabu, is allocated ₦416.748 billion for capital expenditure aimed at strengthening electricity infrastructure across the country.
In addition, the government proposed ₦10.379 billion for recurrent expenditure in the ministry, comprising ₦6.168 billion for personnel costs and ₦4.211 billion for overheads. This brings the total allocation to the power sector to ₦1.107 trillion.
Details of the ministry’s headquarters allocation show that ₦987.932 million has been earmarked for the provision of basic amenities at 38 resettlement sites for project-affected communities. These include schools, solar-powered boreholes, roads, health centres, as well as survey and land demarcation works.
The government also plans to spend ₦840 million on ongoing distribution expansion programme projects aimed at utilising stranded power from the national grid. Under the plan, each of the six geopolitical zones—South-South, South-West, South-East, North-East, North-West, and North-Central—will receive ₦400 million allocation.
In Delta State, ₦280 million has been proposed for the construction of a power mini-grid at Delta University, Agbor. The government also plans to spend ₦52.5 million on the construction of a dedicated 300-kilometre 33kV line from the Ughelli transmission station to the Federal University of Petroleum Resources, Effurun.
Additionally, ₦350 million has been allocated 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 allocations underscore the federal government’s focus on expanding electricity access, improving distribution infrastructure, and supporting educational and rural communities through targeted power projects in the 2026 fiscal year.
