Abuja, Nigeria – The Nigerian Bulk Electricity Trading Plc (NBET) has disclosed that only N60 million (approximately $38,300) was released from the N858 billion (approximately $548 million) appropriated in its 2025 capital budget to address electricity tariff shortfalls. The revelation came during the agency’s budget defence before the Senate Committee on Finance.
Okay News reports that Johnson Akinnawo, Acting Managing Director of NBET, made the disclosure while reviewing the agency’s 2025 budget performance and presenting its 2026 proposal. He warned that persistent underfunding and non-cost-reflective tariffs continue to weaken Nigeria’s electricity market. Akinnawo explained that the significant gap between appropriated funds and actual releases severely constrained the agency’s ability to meet its obligations to power generation companies.
Akinnawo told lawmakers that despite the N858 billion appropriation to address tariff gaps and outstanding obligations to generation companies, actual funding fell drastically short. He stressed that the limited release affected NBET’s overall budget performance for the year. “At the close of the year, only N60 million was released toward the end of the year,” he said. “Unfortunately, because of that, our budget performance was affected.”
He further explained the structural challenges facing the power sector. “There remains a gap between the cost of generation, transmission, and distribution of electricity,” Akinnawo stated. “Every GenCo gets paid an equal percentage from whatever collections come from the DisCos. The Federal Government, through the Ministry of Finance, covers the funding gap arising from partial risk guarantees to make up the difference.” He added that the gap between generation costs and allowed tariffs is substantial, warning that without government intervention, the market cannot remain stable. The N60 million released could not be utilised due to procurement process constraints, further compounding the agency’s funding challenges.
NBET was established as a stabilising institution in Nigeria’s power sector. Its role involves purchasing electricity from generation companies and selling it to distribution companies while guaranteeing payments to power producers. Consequently, the agency is central to maintaining liquidity across the entire electricity value chain. However, it has long grappled with structural deficits in the market.
The electricity tariff structure has remained largely non-cost-reflective, creating a persistent funding gap between actual generation costs and approved tariffs. Distribution companies remit collections to NBET, which are then used to pay generation companies, but collections are often insufficient. The Federal Government intervenes to cover these funding gaps through the Ministry of Finance, including partial risk guarantees. Delays or shortfalls in government releases have repeatedly affected NBET’s ability to meet its obligations.
These structural weaknesses have left NBET increasingly exposed to mounting debts owed to generation companies. In 2025, management of the Niger Delta Power Holding Company Limited raised concerns over a N600 billion (approximately $383 million) debt owed by NBET, warning that it was severely hindering its operations. NBET has since engaged the Budget Office and the Ministry of Finance over the non-release of appropriated funds.
Lawmakers expressed concern over the widening financial strain in the power sector and its implications for electricity supply nationwide. Without improved capitalisation and sustained funding support, stakeholders warn that NBET’s ability to stabilise the electricity market may remain constrained. This could have potential consequences for power generation, liquidity in the sector, and electricity supply across Nigeria.
What happens next depends on whether the National Assembly appropriates sufficient funds in the 2026 budget and whether the Ministry of Finance ensures timely releases. Power sector observers will also watch for any reforms that might address the underlying issue of non-cost-reflective tariffs.
 has disclosed that only N60 million (approximately $38,300) was released from the N858 billion (approximately $548 million) appropriated in its 2025 capital budget to address electricity tariff shortfalls.){kind=link}