March 29, 2024

Oredola Adeola

The Nigerian Senate has approved the sum of N95,261,665,187 Billion as the FGN Power Company Budget for 2022.

The approval followed the consideration and adoption of the report of the Committee on Power Transmission of the FGN Power Company Budget for 2022 by Senator Gabriel Suswam and seconded by Senator Ahmad Babba Kaita during the plenary on Wednesday.

EnergyDay further gathered that the budget was made up of N2.82 billion overhead expenditure, N867.80 billion personnel cost, and N91.56 billion capital expenditure

The Senate approval is coming a week after the House of Representatives also approved the same amount for the FG’s Power Company.

EnergyDay’s check showed that the FGN Power Company was established by the Nigerian Government as a special purpose vehicle, to own and execute the Presidential Power Initiative(PPI), a project conceived as a three-phase initiative to rehabilitate and expand Nigeria’s electricity grid through improved generation, transmission, and distribution.

The PPI was inaugurated during a meeting between Nigeria’s President and German Chancellor, Angela Merkel, on August 31, 2018.

The mandate of the company was to resolve the existing bottlenecks in transmission and distribution networks, which will increase electricity access across Nigeria.

The N91.56 billion capital expenditure in the 2022 budget for the company is part of the financing for the PPI after billions of naira had already been released for the initiative.

EnergyDay’s findings showed that the FGN Power Company had in June 2022, received the sum of $100m(N41.6bn at the official exchange rate of N415.63/$) as a take-up grant out of $200 million for PPI project from the Ministry of Finance.

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