The Federal Government has earmarked ₦1.096 trillion for capital projects in the power sector under the 2026 Appropriation Bill, with the Rural Electrification Agency (REA) emerging as the biggest beneficiary.
Breakdown of the budget shows that the REA was allocated ₦502.21 billion, the highest single share among agencies under the power sector, underscoring the government’s renewed push to expand electricity access, especially in rural and underserved communities.
The Federal Ministry of Power, under the leadership of Chief Adebayo Adelabu, received ₦416.748 billion for capital projects. In addition, ₦10.379 billion was proposed for recurrent expenditure, comprising ₦6.168 billion for personnel costs and ₦4.211 billion for overheads. This brings the ministry’s total budgetary allocation to ₦1.107 trillion.
At the ministry’s headquarters, ₦987.932 million has been set aside for the provision of basic amenities for project-affected communities across 38 resettlement sites. These will cover infrastructure such as schools, solar-powered boreholes, roads and health centres, as well as survey and land demarcation.
The government also plans to invest ₦840 million in ongoing distribution expansion projects aimed at utilising stranded electricity on the national grid. The funding is to be spread evenly across the six geopolitical zones, with ₦400 million each allocated to the South-South, South-West, South-East, North-East, North-West and North-Central regions.
In Delta State, ₦280 million has been budgeted for the construction of a power mini-grid at Delta State University, Agbor. The state will also benefit from a ₦52.5 million project for the construction of a dedicated 300-kilometre, 33kV power line from the Ughelli transmission station to the Federal University of Petroleum Resources, Effurun.
Another ₦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 new 7.5MVA transformer.
The allocations highlight the Federal Government’s focus on improving electricity infrastructure, expanding access to power and strengthening the grid as part of its broader economic and development agenda for 2026.
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