Senate Questions NBET's Viability Amid Zero Funding

The Nigerian Senate's finance committee, chaired by Sani Musa, expressed concerns regarding the survival of the Nigerian Bulk Electricity Trading (NBET) agency in the 2025 fiscal year, particularly given the lack of funding from an N858 billion appropriation. The committee highlighted that NBET has not utilized N60 million of its budget and questioned how the agency could operate without cash backing.

Johnson Akinnawo, the managing director of NBET, explained that regulatory income allows the agency to function despite the absence of capital fund releases. However, the non-release of the N858 billion capital vote exacerbates NBET's debt exposure to power generation companies.

The committee inquired whether NBET plans to seek additional capital to strengthen its operations. Akinnawo acknowledged that insufficient capital remains a significant challenge, revealing that management has engaged with the budget office and the finance ministry regarding the appropriated funds.

The committee advised NBET to submit a comprehensive proposal detailing its funding requirements and strategic plan to address structural challenges in the power sector, with expectations to review this submission for the 2026 budget.