Federal agencies’ fuel expenses soar amid rising energy costs
In a period marked by higher petrol prices and global oil market instability, Nigeria’s Federal Ministries, Departments and Agencies have significantly increased their spending on fuel and maintenance. Data from the Open Treasury Portal reveals a sharp year-on-year rise in fuel-related costs for vehicles, generators, and other equipment. Industry experts and government officials are now advocating for a transition to electric vehicles and solar-powered systems to address these escalating expenses. The situation has also prompted calls for greater competition and transparency in the downstream petroleum sector.
TLDR
- Federal MDAs spent N11.85bn on fuel for vehicles and generators between January and April 2026, up 113.4% from N5.55bn in the same period of 2025.
- The budget for motor vehicle fuel rose from N122.63bn in 2025 to N207.37bn in 2026, with only 3.18% spent as of April.
- Spending on plant and generator fuel jumped from N2.38bn in the first four months of 2025 to N5.24bn in 2026.
- Maintenance costs for vehicles, equipment, and generators reached N4.39bn in the first four months of 2026, a 164.1% increase from 2025.
- Industry leaders like Omolara Obileye, Yusuf Suleiman, and Ahmed Garba-Ahmed highlighted the financial and operational benefits of electric vehicles and solar-powered solutions as alternatives to petrol and diesel.
