- FEC Earmarks €161m For Procurement, Upgrade Of Power Substations
- Budget Proposal Presentation To Take Place Tomorrow As Deficit Hits N13.13tr
- Presentation Postponed For Final Adjustment To Proposal- Minister
The Federal Executive Council (FEC) has given final approval to President Bola Tinubu’s 2025 budget proposals.
Minister of Budget and Economic Planning, Atiku Bagudu disclosed that the total 2025 expenditure is projected at forty-seven trillion, nine hundred and sixty billion naira is an increase of 36.8 per cent from the 2024 estimate.
This approval took place after the FEC meeting chaired by President Tinubu at the Presidential Villa on Monday.
According to Bagudu, the 2025 Appropriation Bill is pegged on an Oil price benchmark of 75 dollar per barrel, oil production of 2.06 million barrels per day and exchange rate of N1,400 to a dollar.
Bagudu said the total projected revenue for 2025 budget stands at thirty-four trillion, eight hundred and twenty billion naira.
The Minister said that the deficit for the 2025 budget is projected at 13.13 representing 3.89 per cent of the GDP, noting that the Tinubu administration had inherited a deficit of 6.1 trillion naira from the 2023 budget.
Consequently, President Bola Tinubu will present the proposed N47.96tn budget to the joint session of the National Assembly on Wednesday. The exercise, earlier slated for Tuesday (today), was postponed to allow the executive arm to make final adjustments to the budget.
Minister of State for Agriculture, Sabi Abdullahi confirmed this development.
READ ALSO: JUST IN: Tinubu Appoints Eight New Permanent Secretaries
Speaking to Senate Press Corps journalists on Monday, Abdullahi said, “The budget presentation has been postponed from Tuesday to Wednesday. The executive just needs to make one or two adjustments to the budget.”
Previously, Senate President, Godswill Akpabio, had announced during a plenary session that the President would present the budget on Tuesday at the House of Representatives chamber.
Akpabio added that plenary would begin at 10:30am to allow senators convene in the Red Chamber before proceeding in a procession to the House chamber for the presentation.
Meanwhile, FEC has approved contracts for the engineering, procurement, and construction of new substations under the presidential power initiative (PPI) to bolster Nigeria’s power sector.
Adebayo Adelabu, Minister Of Power, said the contracts — worth approximately €161 million — would enable upgrades of 14 existing substations and the establishment of 21 new ones across the country.
He said the project is aimed at increasing the national electricity supply.
“The approval marks a crucial step in delivering on President Bola Ahmed Tinubu’s promise to enhance Nigeria’s power capacity,” Adelabu said.
Adelabu said the initiative aims to achieve an operational capacity of 12,000 megawatts (MW) within four years — with a short-term target of 8,000 MW in the next 12 to 24 months.
READ ALSO: Tinubu Reschedules 2025 Budget Presentation To Wednesday
Key locations for the substations, he said, include Onitsha, Abeokuta, and Sokoto.
“These upgrades are essential for stabilising our transmission network and ensuring reliable power supply to Nigerians,” Adelabu added.
“There were basically two approvals for the Federal Ministry of Power as presented.
“The first was an approval for the award of contract, for engineering, procurement, construction and financing for the implementation of the 330/132 KV and 132/33 KV substations upgrade under the phase one of the presidential initiative, popularly known as the Siemens project.
“Subsequent upon completion of the pilot phase of this project, the FEC at today’s meeting considered it necessary for us to move forward as promised by the president of the Federal Republic of Nigeria at a meeting he held with the President of the Republic of Germany last week.”
Adelabu said the approved cost of the first batch of the “phase one of the Siemens project was €161.33 million”.
“Phase one of this Siemens project, as it relates to the transmission, upgrade and expansion, actually includes 14 brownfield substations that need upgrade and revamping, and 21 Greenfield substations, which are new substations to be built across the country to improve the transmission segment,” the minister said.
“The first batch of this phase one of the projects include one Onitsha, 330/133 KV substation under the Enugu electricity distribution company.
“Two, Offa 132/33 KV substation under the Ibadan electricity company. There is the new Abeokuta 330/132 KV substation.
“We have Ayede 330/132 KV substation. And lastly, Sokoto 132/33 KV substation. Those are the five substations to be worked upon under the first batch of phase one of the Siemens project.”
