FG Proposes N353m To Clear Power Contractors’ Debts

The Federal Government has proposed N353.03m in the 2026 budget of the Federal Ministry of Power to settle outstanding legacy debts owed to local contractors handling ongoing power projects across the country.

The provision, captured under “Legacy Debts Owed to Local Contractors”, is contained in the proposed 2026 budget of the Federal Ministry of Power, which stands at a total of N1.107tn.

Of this amount, capital expenditure dominates with N1.096tn, while personnel and overhead costs are pegged at N6.17bn and N4.21bn, respectively.

Also, the 2026 power budget prioritised energy access and transmission infrastructure.

Under the Rural Electrification Agency (REA), the government proposed N105m for the Energy Access for University Initiative (EEP O&M), aimed at sustaining renewable power solutions in tertiary institutions.

In addition, the sum of N945m has been proposed for the deployment of mini-grids for smart community development across three geopolitical zones.

A breakdown of the budgetary provision shows that N315m each was proposed for the Northeast, South South and Southwest geopolitical zones.

Also, another agency under the Federal Ministry of Power, the Transmission Company of Nigeria (TCN), proposed N2.51bn for compensation payments to project-affected persons and communities nationwide.

The funds will cover crops, economic trees and structures affected by transmission line and substation projects, a key requirement for accelerating right-of-way access and project execution.