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Generator maintenance takes N22b – Nig. MDAs

Generator maintenance takes N22b – Nig. MDAs
Photo by Josh Miller- Ask Nigeria

In 10 years, Nig. will need $100b to fight power sector challenges – World Bank.

It has been calculated that in Year 2023, some Ministries, Departments and Agencies of government in Nigeria will spend an estimated N22 billion on maintenance and fueling generators as a result of unstable power supply in the country. This estimated amount is likely to increase as many agencies refused indication of their generator expenses in the 2023 budget proposal. Without increment, the N22 billion is projected to be spent by over 200 MDAs in Nigeria.

Institutions whose budgetary expenditures on generators were omitted in the government’s budget include Federal Revenue Service (FIRS), the Nigerian Communications Commission (NCC), the Nigerian National Petroleum Corporation (NNPC), Nigeria Customs Service, and others. Nigeria has unsuccessfully struggled with unstable power supplies for many decades which is mostly caused by generation and transmission problems. In 2022, last year, Nigeria’s national grid collapsed eight times. Resultantly, private and public businesses resort to alternative electricity sources, particularly generators.

92 million people lack access to power in Nigeria.

President Muhammadu Buhari, in 2018, alleged that Nigerians do not rely much on generators in their homes and for business operations. Analysts responded to this claim with disagreement because many Nigerians keep suffering from the continuous effect of unstable power access. The Energy Progress Report 2022 which was released by Tracking SDG 7 affirmed that across the globe, Nigeria has the lowest access to electricity and of its over 200 million population, about 92 million people lack access to power.

Details of budgetary expenditures from ministries, departments and agencies state that many MDAs are choosing alternative power sources; producers in Nigeria expend about N3.5 trillion to seek alternative sources of power supplies to enable production. The mode of maintenance on generator sets planned by the MDAs currently lacks clarity, regardless, there is an estimation of billions of naira to be expended on generators. In June 2022, the World Bank asserted that in the next ten years, Nigeria will require about $100 billion to combat challenges in the energy sector.

Institutions with the highest proposals for generator maintenance.

At the top in the list of institutions with the biggest proposals is the Nigerian Army which presented a N1.1 billion budgetary proposal for generator maintenance. However, Onyema Nwachukwu, spokesperson for the Nigerian Army, withheld provision of details of the planned expenditure in December 2022. Also, generator maintenance for the Federal Road Safety Commission will cost N663 million. The Nigerian Police formation will spend a total of N591 million. Ahmadu Bello University Teaching Hospital will expend N303 million while the National Agency for Food and Drug Administration Control (NAFDAC) have a budget of N298 million.

Additionally, the budgetary proposal for the Federal Radio Corporation of Nigeria is N238 million. The National Eye Centre Kaduna will spend the sum of N230 million. The Economic and Financial Crime Commission (EFCC) proposed a budget of N277.8 million. The Nigerian Navy likewise proposed a N224 million budget. Nigerian Film Corporation came up with a budget of N188 million. Office of the Auditor General of the Federation has a budget of N160 million. Similarly, the Federal University of Agriculture Umudike, the University of Lagos and the Nigerian Defence Academy budgeted N225 million, N218 million and N211 million respectively.

Budgetary expenditure on generators is a waste of national resources.

The former Chairman of the Nigeria Electricity Regulatory Commission (NERC), Sam Amadi, said that the government’s budgetary allocation for generators implies that its privatization exercise did not fulfill their expectations. He stated that the aim of the reform is to guarantee that the government spends less on the power sector and spends more on human development projects. Ijeoma Okereke-Adagba, a programme officer at the Centre for Journalism Innovation and Development, also admitted that the budgetary expenditure on generators is a waste of national resources.


Related Link

Energypedia: Website

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Admin
1
19 days ago

Generator maintenance takes N22b – Nig. MDAs – In 10 years, Nig. will need $100b to fight power sector challenges – World Bank. – Express your point of view.

Member
8
19 days ago

More importantly to focus on is the privatization of the power supply which has bring little to no progress towards the electricity supply in the country. Instead of spending so much on alternative power sources, government should just focus on improving the power grid and power supply across the country.

Abusi
Member
8
19 days ago

We actually need to overhaul this energy supply system. It is engulfing our funds and still maximum power is not being supplied to people. We really need to make the energy sector work.

Member
8
19 days ago

As a direct consequence of the unreliability of the power supply throughout the nation, Nigeria would rack up significant costs for the servicing and fueling of its generators.

Member
8
19 days ago

This anticipated figure is expected to increase as a result of the fact that several organizations have declined to provide any indication of the costs associated with their generators in the 2023 budget plan.

Member
9
19 days ago

Generator maintenance takes N22b – Nig. MDAs. Imagine this Nigeria government not having solutions to the problem electricity over the years

Member
8
19 days ago

The Federal Revenue Service is one of the organizations whose planned spending on generators were not included in the final version of the government’s budget.

Member
9
19 days ago

Proper arrangement or measure should be put in place by the government so that the country can have 24hrs light because what both organisations and individuals are spending in other to have power in their respective areas is way too much .

Member
8
19 days ago

There were eight separate instances of the national grid failing in Nigeria. As a direct consequence of this, both public and private organizations are turning to alternative forms of electricity, particularly generators.

Member
8
19 days ago

I strongly disagree with this notion due to the fact that a large number of Nigerians continue to suffer from the ongoing effects of unreliable electricity access.

Member
8
19 days ago

The goal of the reform is to ensure that the government will spend a lower percentage of its budget on the electricity industry and a higher percentage of its budget on initiatives that will advance human development.

Member
8
19 days ago

The goal of the reform is to ensure that the government will spend a lower percentage of its budget on the electricity industry and a higher percentage of its budget on initiatives that will advance human development.

Member
9
19 days ago

The issue of power has always been a thing of concern to all and considering the fact that issue of use of generator at all times to carry out several activities and money used in servicing such generator are humongous.

Member
8
18 days ago

The deregulation of the power source, which has made little headway on electricity provision, is more significant. Rather than investing so much on alternate power sources, the government should improve the electricity system and supply nationwide.

Member
8
18 days ago

This entire energy distribution infrastructure has to be renovated. It’s eating up our money, but people still aren’t getting their full power allowance. The energy industry is crucial, and we must fix it.

Member
8
18 days ago

Lack of adequate power supply in our country as been a serious issue instead of spending huge money on this they should improve the power supply changing the necessary output to make light stable so we can be enjoying the light

Member
8
18 days ago

The government should make proper arrangements so that the country has 24 hours of light because organizations and individuals are spending too much on power.

Member
8
18 days ago

We actually need to overhaul this energy supply system. It is engulfing our funds and still maximum power is not being supplied to people. We really need to make the energy sector work.

Member
8
17 days ago

Due to the fact that many agencies declined to disclose their generator expenses in the 2023 budget proposal, this anticipated sum is likely to rise.

Member
8
17 days ago

The Nigerian Army, which submitted a N1.1 billion budgetary plan for generator maintenance, is the organization with the largest bid.

Member
8
16 days ago

If the Generator maintenance takes N22b and it is expected to take up to ₦100b to be able to combat power challenges then Power Holding Company should be checked for accountability.

Member
8
16 days ago

The world bank has given estimation to the tune of ₦100b to be able to combat power challenges in the country. Already ₦22b is been used for generator maintenance.

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