The Federal Government has proposed spending a total of N92.9 billion on electricity and diesel across ministries, departments, and agencies (MDAs) in the 2026 fiscal year, highlighting the ongoing reliance on alternative power sources due to unreliable grid supply.
Okay News reports that details from the 2026 Appropriation Bill, show significant allocations for energy-related recurrent expenditure, reflecting the persistent strain Nigeria’s power challenges place on public finances.
Electricity spending is distributed across various MDAs, with the Ministry of Defence leading at N16.16 billion, driven by the energy demands of military bases, barracks, and operational facilities nationwide.
The Federal Ministry of Health and Social Welfare follows with N9.43 billion, largely covering the power needs of teaching hospitals and federal medical centres.
The Federal Ministry of Education is allocated N8.23 billion to support federal universities, colleges of education, and unity schools.
Other notable allocations include the Ministry of Police Affairs at N3.69 billion, the Office of the National Security Adviser at N3.59 billion, and the Ministry of Foreign Affairs at N3.49 billion for Nigeria’s diplomatic missions abroad.
The Presidency is projected to spend close to N2 billion on electricity, while ministries such as Agriculture, Transport, Interior, Budget and Economic Planning, and Science and Technology each have provisions running into hundreds of millions of naira.
Even regulatory bodies like the Independent Corrupt Practices Commission (ICPC), Code of Conduct Bureau, Auditor-General’s Office, and Revenue Mobilisation, Allocation and Fiscal Commission have electricity budgets ranging from tens to hundreds of millions.
Diesel expenditure further underscores the heavy dependence on generators, with the Ministry of Health topping 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 the Ministry of Foreign Affairs together account for over N3.6 billion in diesel costs.
Ministries including Interior, Justice, Police Affairs, Agriculture and Food Security, Budget and Economic Planning, and Information and National Orientation each budget between several hundred million and over N1 billion for diesel.
Smaller agencies such as the Code of Conduct Tribunal, Police Service Commission, and Federal Character Commission also include diesel provisions, though at lower levels.
The substantial energy-related spending in the 2026 budget reinforces concerns about the fiscal cost of Nigeria’s unreliable power supply, even as reforms continue in the electricity sector.
Despite assurances of improved generation, transmission, and distribution, MDAs are still budgeting heavily for grid electricity and diesel alternatives to sustain operations.
The figures highlight the slow pace of structural improvement in electricity reliability for large public institutions.
In 2025, the Federal Government issued the first bond under the Presidential Power Sector Debt Reduction Programme to address longstanding payment arrears in the industry.
Nigeria’s power sector has long struggled with inadequate generation capacity, transmission bottlenecks, and distribution inefficiencies.
While recent reforms have expanded state-level participation and private investment, grid stability remains a challenge, particularly for critical public facilities.
Previous analyses have consistently shown rising diesel and energy-related recurrent expenditure across MDAs, underscoring the enduring impact of power shortages on public finances.
 in the 2026 fiscal year, highlighting the ongoing reliance on alternative power sources due to unreliable grid supply.){kind=link}