In the 2024 budget, the federal government has earmarked N40 billion to settle outstanding electricity bills owed by ministries, departments, and agencies (MDAs). This allocation, categorized as ‘Settlement of MDAs’ Electricity Debts,’ remains consistent with the budget for 2023 but represents an increase from the 2022 allocation of N27 billion.
Despite the privatization of the power sector in November 2013, some MDAs, including the military, have accumulated substantial unpaid energy bills, exceeding N90 billion. This persistent issue has prompted the government to allocate funds to address these arrears and ensure a sustainable power value chain.
Earlier in 2022, the Association of Nigerian Electricity Distributors raised concerns about the mounting debts, emphasizing the need for resolution. The allocation reflects the government’s commitment to addressing financial challenges within the power sector and promoting a reliable and efficient electricity supply.
