Northern Nigerian Breaking News

Sokoto to spend N1bn on generator fuel in 2026, budget to rise to N3.5bn in 2027

By Aminu Abubakar

The Sokoto State Government has budgeted more than N1 billion for fuelling government-owned generators in 2026, with projections showing the amount could rise to over N3.5 billion in 2027.

SolaceBase analysis of the state’s approved budget shows that N1.066 billion has been earmarked under “Plant/Generator Fuel Cost” for the 2026 fiscal year, reflecting the continued reliance of government institutions on generator-powered electricity.

The provision appears under the “Fuel and Lubricants – General” category within the state’s overhead expenditure framework.

Further review of the budget indicates that the generator fuel expenditure is expected to rise significantly in subsequent years, with the out-year estimate for 2027 projected at N3.515 billion. The figure is expected to increase further to N4.120 billion by 2028 if projections contained in the budget estimates are implemented.

The planned expenditure highlights the growing financial burden of powering government operations through alternative energy sources amid persistent electricity supply challenges.

According to the budget document, the N1.066 billion allocation for 2026 forms part of a broader N2.259 billion total earmarked for fuel-related expenses in the state’s overhead costs.

The broader fuel budget covers several sub-categories, including motor vehicle fuel costs, other transport equipment fuel costs and fuel for government plants and generators.

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Breakdown of the figures shows that N988.7 million has been allocated for motor vehicle fuel costs in 2026, while N204 million is set aside for other transport equipment fuel expenses.

Together with the N1.066 billion generator fuel allocation, the total projected fuel-related expenditure for the year amounts to more than N2.25 billion.

However, the out-year projections suggest that fuel-related spending could more than double in 2027.

The budget estimates show that total fuel expenditure may rise to N4.8 billion in 2027, driven largely by the sharp increase in generator fuel costs, which alone account for over N3.5 billion of the projected amount.

The 2028 estimate indicates a further increase in generator fuel spending to N4.12 billion.

Overall, the state’s total expenditure for the 2026 fiscal year stands at N758.7 billion, according to the approved budget.

Personnel costs account for N70.57 billion of the total expenditure, while other recurrent costs are projected at N134.78 billion.

Overhead costs alone are estimated at N102.01 billion in 2026, covering a wide range of administrative and operational expenses across ministries, departments and agencies.

The budget also includes allocations for utilities such as electricity charges, telephone charges, internet access and water services.

Under electricity charges, the government allocated N463.22 million for 2026, with projections rising slightly to about N473.9 million in 2027 and remaining at the same level in 2028.

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Despite these electricity allocations, the state still maintains a substantial generator fuel budget, indicating continued reliance on backup power generation.

Beyond fuel expenses, the budget also reflects significant spending on other operational costs.

For instance, the government allocated N12.88 billion for travel and transport expenses in 2026.

This includes N5.56 billion for local travel and transport for training purposes and N4.06 billion for other local travel and transport expenses.

International travel and transport for training alone is projected to cost N2.94 billion during the same period.

Maintenance services also form a major component of overhead spending.

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The budget allocates N10.72 billion for maintenance services in 2026, covering areas such as maintenance of vehicles, office furniture, office buildings, IT equipment, plants and generators.

Within this category, N1.21 billion has been allocated specifically for the maintenance of plants and generators in the 2026 fiscal year.

Security-related expenditure also features prominently in the budget.

The state earmarked N8.21 billion under security vote and related operational costs for 2026.

The amount is projected to increase to N15.5 billion in 2027 and remain at the same level in 2028.

Consulting and professional services are also expected to cost the state significant sums.

The budget allocates N7.63 billion for consulting services in 2026, covering areas such as financial consulting, information technology consulting, legal services, engineering services and other professional engagements.

In addition, the government earmarked N17.40 billion for other services in 2026.

This category includes security services, office rent, residential rent and other operational services required by government institutions.

Miscellaneous expenses also constitute a substantial portion of the overhead spending.

The budget allocates N26.94 billion for miscellaneous expenses in 2026, including welfare packages, publicity and advertisements, medical expenses, scholarships and other administrative costs.

Specifically, welfare packages alone account for N15.79 billion of the total miscellaneous allocation for the year.

Publicity and advertisements are allocated N1.53 billion in the 2026 budget, while medical expenses within Nigeria are projected at N376.9 million.

The state also earmarked N1.5 billion for foreign scholarship schemes in 2026 and N1.6 billion for domestic scholarship programmes.

In addition to recurrent expenditure, the government allocated funds for grants and contributions to various entities.

The budget shows that N7.41 billion has been set aside for local grants and contributions in 2026.

Of this amount, N7.03 billion is allocated for grants to communities and non-governmental organisations.

Another N180.5 million is earmarked as grants to local governments under the current expenditure framework.

The state also included N2.56 billion for meal subsidies to government schools as part of its subsidy programme for 2026.

Meanwhile, public debt servicing remains another major spending obligation.

The budget provides N19.76 billion for public debt charges in 2026.

This includes N6.003 billion for domestic interest on long-term borrowings and N2.42 billion for repayment of foreign principal obligations.

Domestic interest payments alone are projected at N5.41 billion in 2027, while foreign principal repayments are estimated at N2.52 billion during the same year.

Overall, the Sokoto State budget projections indicate rising operational costs across several sectors of government administration.

The sharp projected increase in generator fuel expenditure—from N1.066 billion in 2026 to more than N3.5 billion in 2027—underscores the financial implications of maintaining alternative power supply for government operations amid persistent electricity challenges.

If the projections are implemented as outlined in the budget estimates, the state could spend more than N4 billion annually on fuelling generators by 2028.

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