NBET Budget Release 2025 Falls Far Short: Only N60 Million Released from N858 Billion Allocation
The Nigerian Bulk Electricity Trading (NBET) Plc has revealed that only N60 million was released from its N858 billion capital budget for 2025, a move that has sparked concerns about the stability of Nigeria’s electricity sector. The disclosure came from NBET’s Acting Managing Director, Johnson Akinnawo, during the agency’s 2025 budget performance review and defense of its 2026 proposal before the Senate Committee on Finance.
Akinnawo highlighted that this massive shortfall has significantly constrained NBET’s ability to meet its obligations to power generation companies. “At the close of the year, only N60 million was released toward the end of the year. Unfortunately, because of that, our budget performance was affected,” he told lawmakers. He also stressed that persistent underfunding, combined with electricity tariffs that do not reflect actual costs, continues to weaken the market and threaten nationwide electricity supply.
The agency, established to stabilise Nigeria’s power sector by purchasing electricity from generation companies and selling to distribution companies, relies heavily on government releases to guarantee payments. However, the gap between generation costs and allowed tariffs remains substantial. NBET’s limited release could not even be utilized due to procurement process constraints, compounding the funding challenge. Without government intervention, the electricity market risks instability, Akinnawo warned.
Lawmakers expressed concern over the growing financial strain on the sector, especially given that NBET owes billions to generation companies. Reports indicate that in 2025, Niger Delta Power Holding Company (NDPHC) Limited raised alarms over a N600 billion debt exposure from NBET, emphasizing the negative impact on its operations. Despite interventions by the Ministry of Finance, including partial risk guarantees, the agency continues to grapple with structural deficits in the electricity value chain.
Industry analysts warn that unless NBET receives improved capitalisation and consistent funding, its role as a stabilizing force in Nigeria’s electricity market may remain constrained. The limited release of the 2025 budget not only hampers payments to power producers but could also affect liquidity in the sector, operational efficiency of generation companies, and overall electricity supply for millions of Nigerians.
source: nairametrics