Nigeria: Senate Panel Queries Electricity Agency On Operation Without Funding

Committee members expressed concern over how the agency had continued to operate despite the shortfall in funding.

Members of the Senate Committee on Finance on Thursday raised concern about how the Nigerian Bulk Electricity Trading (NBET) Plc has been operating despite receiving little to no funding from the federal government.

The lawmakers raised the concern when the Acting Managing Director of NBET, Johnson Akinnawo, appeared before the committee to defend the agency's 2026 budget proposal

NBET, an agency under the Ministry of Power, is responsible for managing existing power purchase agreements and procuring new power during the electricity industry's transition process. It acts as a bulk trader, purchasing electricity from generation companies (GenCos) and selling to distribution companies (DisCos), while also guaranteeing payments to GenCos.

Based on the agency's 2025 budget performance report, NBET received only N60 million out of the N858 billion appropriated to it in the 2025 budget.

Committee members expressed concern abouf how the agency had continued to operate despite the shortfall in funding.

In response, Mr Akinnawo explained that NBET generated some revenue during the period under review, which it used to sustain its operations.

He added that the agency had engaged the Budget Office and the Ministry of Finance on the issue, but no tangible action had been taken. He lamented that the funding gap had plunged the agency into debt.

Mr Akinnawo stressed that without adequate government support, NBET's stabilising role in the electricity value chain would remain constrained, with adverse effects on generation companies and overall power supply.

"The gap between generation costs and allowed tariffs is substantial, and without government intervention, the market cannot remain stable," he said .

The Chairman of the Senate Committee on Finance, Sani Musa, subsequently directed NBET's management to submit a comprehensive proposal detailing its funding requirements and a strategic plan to address the structural challenges facing the power sector.

The committee is expected to review NBET's submission and make recommendations as part of its consideration of the 2026 budget proposal.

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