MDAs spent N3.3bn on diesel in five months

By Emmanuel Kwada

Amidst Nigeria’s lingering power supply challenges, Ministries, Departments, and Agencies of the Federal Government collectively spent over N3.3bn on diesel between July and November 2024 to power their offices, generators, and powerhouses.

This is according to records obtained on Friday by The Insight from BudgIT’s accountability platform, GovSpend.

Credit: NGF Digital Repository

An analysis of expenditure records revealed that these agencies relied heavily on diesel to maintain operations due to erratic electricity supply, raising concerns about the impact of energy costs on governance and national productivity.

A breakdown of the expenditures shows that in July 2024 alone, MDAs spent N1.3bn on diesel, followed by N705m in August, N598m in September, N479m in October, and N290m in November.

The high costs reflect the dire situation of power supply in the country, forcing government institutions to rely on diesel-powered generators and powerhouses to sustain their operations.

July 2024 alone, MDAs spent N1.3bn on diesel, followed by N705m in August, N598m in September, N479m in October, and N290m in November

A closer look at the payments showed while not all the fuel were consumed by power generating plants, several MDAs spent substantial amounts on diesel to power their offices, generators, and power plants, including the Presidential Villa, law enforcement agencies, federal hospitals, and universities.

Notably, in July 2024, the State House (Presidential Villa) alone spent N433,575,000 on 315,000 litres of diesel supplied by NNPC Retail Ltd for its powerhouse. Similarly, the Federal Road Safety Commission purchased 22,000 litres of diesel at a cost of N34,122,000, while the Nigeria Security and Civil Defence Corps spent N23,560,564.78 on 18,000 litres of diesel for its headquarters.

We will need about N2.779 trillion to enable us to execute the about 149 projects we are currently engaged in

Several universities and hospitals were also among the major consumers. Nnamdi Azikiwe University Teaching Hospital, Nnewi, in one instance made part payments totaling N29,722,184 for diesel, while Federal Teaching Hospital, Abakaliki, spent N7,216,046.25 in August.

Additionally, the Office of the Head of the Civil Service of the Federation procured 10,000 litres of diesel for N17,470,050, while the Federal Ministry of Information and National Orientation spent N6,869,491.85 on 3,000 litres of diesel.

The heavy expenditure on diesel highlights the unreliable electricity supply in the country, which has left MDAs with no choice but to resort to expensive alternative energy sources.

Many government offices, universities, and hospitals have continued to rely on generators, further draining public funds that could have been allocated to infrastructure or essential services.

Despite repeated promises of power sector reform, Nigeria’s national grid remains plagued by frequent collapses, inadequate generation capacity, and poor distribution networks, forcing both government institutions and private businesses to depend on self-generated electricity.

If we don’t act decisively, we risk being left behind in the global energy transition

Meanwhile in January, the Minister of Power, Chief Adebayo Adelabu, said the Federal Government is tackling the incessant grid collapse with the construction of 14 brown field substations and 20 green field substations.

He said agreement has already been signed for the construction of five sub­stations starting Q1, noting that this will further strengthen the grid capacity and reduce instances of grid collapse.

The minister disclosed these in a state­ment by Bolaji Tunji, his Special Adviser on Strategic Communications and Media Relations.

According to Adelabu, “On the issue of incessant grid collapse, efforts are continuing to tackle the problems. It is a known fact that over the years, the infrastructure has been neglected and allowed to decay to a state of dilapidation. These are being gradually tack­led.”

Credit: Transmission Company of Nigeria

In a separate statement in January, Adelabu said , “TCN alone, we will need about N2.779 trillion to enable us to execute the about 149 projects we are currently engaged in all over the country. Our total budget as a ministry is not even up to this but as the saying goes that half bread is better than none.

Energy analysts argue that a transition to solar power solutions in government facilities could significantly cut fuel costs while promoting environmental sustainability.

The President of the Nigeria Consumer Protection Network, Mr Kunle Olubiyo, expressed concern over the country’s insufficient investment in renewable energy.

He emphasised the growing gap between Nigeria’s power generation and global advancements in clean energy.

“We need to move beyond token investments if we are serious about reducing our dependence on fossil fuels and addressing power shortages,” Olubiyo said.

“If we don’t act decisively, we risk being left behind in the global energy transition,” he warned, urging the government to prioritise substantial funding and strategic policies for the renewable energy sector.

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