FG Urged To Address Funding Gaps In Nigerian Bulk Electricity Trading

The chairman of the Senate Committee on Finance, Sani Musa, has expressed concerns over poor funding and budgetary allocations to the Nigerian Bulk Electricity Trading (NBET).

H wondered how an agency with such  economic significance will function with low or no funding for a number of years irrespective of the fact that there is a shortfall in the overall funding of the public service.

He spoke at NIBET defence of its 2026 budget over the weekend at the National Assembly complex.

Addressing the budget performance report of the agency, the managing director Johnson Akinnawo said, it received N600 million, out of a budget estimate of N858 billion in its 2025 yearly appropriations, an inconsiderate proportion of its total expenditure cost for the year.

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

To end the perennial non-disbursement of funds, and put the agency on a financial sustainability, the Senate Committee Chairman subsequently directed NBET’s management to submit a comprehensive proposal detailing its funding requirements and a strategic plan to address the financial and structural challenges facing the organization.

Based on recent industry trends, Nigerian power sector has focused on massive electricity demand growth, co–driven by the Nigerian Bulk Electricity Trading NBET, which is a policy shift toward energy efficiency, that caught the attention of the Nigerian Parliament to consider a legislation that will provide adequate funding for NBET.

NBET is a special trader within the Nigerian Electricity Supply Industry, NESI, which purchases power in bulk from generation companies (GenCos)and resell to distribution companies, (DisCos).

The agency also facilitates debt recovery, between the generation and distribution companies and ensures a free and fair transition in the power sector value chain, towards a steady power supply to consumers.

The committee questioned why NBET with enormous responsibility to coordinate power sector trading and market should be left to operate without adequate funding.