The Minister of Power, Chief Adebayo Adelabu, on Wednesday disclosed that the Federal Ministry of Power operated without any capital allocation in the 2025 budget, but said the situation did not prevent the ministry from fulfilling its supervisory and regulatory roles in the electricity sector.
Adelabu made the disclosure during the budget defence session before the Senate Committee on Power at the National Assembly in Abuja.
He explained that while salaries and overhead costs were fully implemented, the ministry recorded zero performance in capital expenditure due to the absence of fund releases.
“There are three components to the budget, which are salaries and wages, overhead costs, and capital expenditure. The first two were achieved 100 per cent, but we recorded zero per cent on the capital component.
However, we have agencies under the ministry that generate revenues on their own and could carry on their work. This made it much easier for us to weather through the year,” he said.
Despite the funding constraints, Adelabu said the ministry maintained oversight of agencies and continued to drive sector reforms.
He added that the national grid remained relatively stable in 2025, recording only one disturbance caused by vandalism and gas supply disruption.
He contrasted this with 2024, when the country experienced one full grid collapse and four other disturbances.
Adelabu assured lawmakers that the Federal Government had taken measures to prevent a repeat of the 2025 fiscal lapses, pledging improved budget performance in 2026.
He disclosed that about 30 per cent of the ministry’s capital budget for 2026 would be released by the end of March, with the remaining 70 per cent to be implemented later in the year.
The Senate Committee on Power, chaired by Senator Enyinnaya Abaribe, described budgeting as a critical tool for transparency, accountability, and effective public sector management.
READ ALSO: NASS Pledges Support for Nigerian Power Sector Reform
The committee emphasised the importance of the electricity sector in driving economic growth, industrialisation, and diversification, and pledged sustained oversight to ensure effective implementation of approved budgets.
Figures from the Budget Office of the Federation showed that Ministries, Departments, and Agencies (MDAs) received less than N1 trillion for capital projects in the first seven months of 2025, despite a total appropriation of N18.53 trillion for capital expenditure.
Actual releases amounted to just N834.8 billion, representing a performance rate of 7.72 per cent within the period.
Adelabu was accompanied to the session by the Permanent Secretary of the ministry, Mamuda Mamman, and other senior officials.
He highlighted that ongoing reforms under the Electricity Act, which decentralised the sector and allowed states to play a greater role in power generation and distribution, remained on course despite the 2025 budgetary challenges.