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The Federal Ministry of Power operated without any capital allocation in the 2025 budget, according to information released by Chief Adebayo Adelabu, Minister of Power, on Wednesday. However, he stated that this did not prevent the ministry from fulfilling its regulatory and supervisory duties in the electricity industry.
In addition, Adelabu promised parliamentarians that the Federal Government has taken action to prevent the financial errors that hindered the execution of the capital budget for 2025, promising better results in 2026.
During the National Assembly’s budget defense session, the minister told the Senate Committee on Power in Abuja that the lack of capital funds slowed down operations in various ministries, departments, and agencies. However, he expressed confidence that the situation would not happen again.
In 2025, he said, the ministry’s capital expenditure performance was zero since no funds were released, even though wages and overheads were fully implemented.
“The budget consists of three parts: capital expenditure, overhead expenses, and salaries and wages,” he stated. We obtained 100% for the first two, however we recorded 0% for the capital component. But the ministry also has entities that can continue their work and make money on their own. Our ability to weather the year was greatly aided by this.
Adelabu emphasized that in spite of the financial limitations, the ministry continued to oversee agencies and promote sector reforms.
The nation’s system was comparatively steady in 2025, he informed the MPs, with only one breakdown, which he ascribed to vandalism and a disruption in the gas supply.
One complete grid failure and roughly four disruptions were documented in 2024, when budget performance was far better. But when we didn’t receive anything in 2025, we did record one disruption, which occurred in the Niger Delta due to an explosion and vandalism that impacted the gas supply,” he said.
The minister went on to say, “Investments made to stabilize the grid allowed us to overcome this obstacle. So, it is untrue that the country was plunged into darkness in 2025 because we did not receive funding.
Previous governments have struggled to strike a balance between budgetary restraints and the requirement for significant capital infusions into generation, transmission, and distribution, resulting in underinvestment, inadequate infrastructure, and funding gaps in Nigeria’s power industry.
Improving access to power, bolstering transmission networks, and increasing grid capacity all depend on capital investment in the industry. Delays in budget releases frequently hinder project execution and compromise the results of reform.
Adelabu revealed that in order to expedite implementation, a portion of the capital allocation would be released in the first quarter of 2026, despite the 2025 setback.
“The ministry is anticipated to receive approximately 30% of the 2026 capital budget before the end of March, with the remaining 70% being implemented for the remainder of the year,” he stated. In order to prevent the budgetary miscalculation that impacted the implementation of the 2025 budget in 2026, the federal government is taking all necessary measures.
The minister pointed out that President Bola Tinubu’s pledge to enhance budget performance in all important economic sectors was consistent with the assurance.
Budgeting is a vital tool for guaranteeing accountability, transparency, and efficient public sector management, according to Senator Enyinnaya Abaribe, the chairman of the Senate Committee on Power, who made this statement earlier.
He stated, “In light of this, ministries, departments, and government agencies are required to present their yearly budget estimates and revenue projections to the National Assembly for approval.”
The committee would maintain oversight to guarantee the efficient execution of authorized budgets, Abaribe added, highlighting the role that the power sector plays in promoting economic growth, industrialization, and diversification.
The power sector is essential to the ongoing development of any economy, as we all know, especially during a time of fast global change and economic diversity. The committee will keep working with the ministry to make sure that agreed budgets are implemented in a real way and to find issues that need legislative backing,” he stated.
Along with other high-ranking officials, the minister was joined by Mamuda Mamman, the ministry’s permanent secretary.
The move coincides with ongoing reforms intended to fortify Nigeria’s electrical value chain after the electrical Act was passed, decentralizing the industry and giving states more authority over the production and distribution of electricity.
In the first seven months of 2025, MDAs got less than N1 trillion for capital projects, according to the figures.
According to a study of data from the Medium-Term Expenditure Framework and Fiscal Strategy Paper (2026–2028) published by the Budget Office of the Federation, capital expenditure for “MDAs and others” was allocated N18.53 trillion in 2025, however the January–July pro rata benchmark was N10.81 trillion.
But during that time, MDAs and associated entities only received N834.80 billion in actual capital disbursements. In the seven-month period, that left a performance rate of just 7.72 percent and a pro rata deficiency of around N9.98 trillion.
The overall image of capital was also poor. It was estimated that the total capital spending for 2025 would be N23.44 trillion, with a pro rata forecast of N13.67 trillion by July. As compared to the pro rata baseline, actual capital expenditures was N3.60 trillion, a 73.7 percent deficiency.
It was stated in the MTEF/FSP paper that 2025 saw poor capital expenditure spending: “Capital expenditure implementation was notably weak.” Less than 10% of the pro-rata capital budget of N10.81 trillion had been distributed to Ministries, Departments, and Agencies, totaling just N834.80 billion at the end of the review period.
