Economy
Nigerian Government Spends N8.73 Billion on Airport Power Supply Amid Ongoing Electricity Issues
In 2024, the Nigerian government allocated a staggering N8.73 billion to maintain power at the country’s airports, with a significant portion directed to resolving electricity issues at the new international terminal of Abuja’s main airport. According to the latest BudgIT GovSpend report released on Wednesday, most of the expenditure went to J. Marine Logistics Ltd, a company contracted to supply power.
The payments to J. Marine Logistics Ltd were broken down as follows:
N5.67 billion for electricity supply between March and September 2023
N2.19 billion paid in May 2024 for power from October to December 2023
An additional N874.42 million on the same day
The persistent power shortages at Abuja’s airport have caused disruptions in critical services, including runway lights, baggage handling systems, and security equipment, particularly during peak travel times and at night.
Looking ahead to 2025, the Nigerian government has allocated N105.95 billion for the aviation sector, a substantial increase from the N63.32 billion spent in 2024. This new budget includes N5 billion earmarked for improving power supply at key airports, including those in Lagos and Abuja, as well as another N5 billion for developing aerospace facilities in the capital.
Aviation Minister Festus Keyamo highlighted in May 2024 that maintaining electricity at Lagos Airport alone costs the government N1 billion each month. He shared that the ministry is exploring alternative power sources, such as solar energy, in an effort to reduce reliance on expensive diesel power. “Lagos airport alone, I am told, we spend N1 billion monthly on electricity. That is still something I am trying to crack,” Keyamo said.
Nigeria spent $817.4m, approximately N1.26 trillion, to service its debt in the first two months of 2025. This represents a 3.12 percent decline when compared to $843.73 million spent in the corresponding period of 2024.
Data from the Central Bank of Nigeria, CBN, International Payments Report shows that in January 2025, the government spent $540.7 million and in February 2025 it spent $276.7 million on debt servicing.
Further breakdown shows that the country had spent $3.81 billion (about N5.9 trillion) for debt service/Payments in 2024.
Recall that the Federal Government unveiled its largest national budget in 65 years, with a record-breaking N54.99 trillion proposed spending, representing a 56.89 percent increase from the N35.05 trillion budgeted in 2024 (including a supplementary N6.2 trillion).
President Bola Tinubu described it as the “Budget of Restoration,” aimed at stabilising the economy and driving growth.
In the budget debt servicing is allocated N16.3 trillion, a 95 percent increase from N8.25 trillion budgeted in 2024.
Meanwhile, data showed that Nigeria’s foreign trade in Letters of Credit, LC, payments fell by 0.55 percent Year-on-Year (YoY) to $160 million in the first two months of this year from $160.9 million in the corresponding period of last year.
LC payments is one of the critical measure of a country’s credit worthiness but a decline or increase could also reflect developments in volume of import trades.
LC payments for 2024 stood at $801.06 million, representing a 39 percent YoY decline from $1.32billion in 2023.
The Naira appreciated Tuesday to ₦1,565 per dollar in the parallel market from ₦1,570 per dollar on Monday. However, it depreciated to ₦1,537 per dollar in the Nigerian Foreign Exchange Market (NFEM).
Data published by the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to ₦1,537 per dollar from ₦1,528 per dollar on Monday, indicating ₦9 depreciation for the naira.
Consequently, the margin between the parallel market and NFEM rate narrowed to ₦37 per dollar from ₦42 on Monday.
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for ₦1575 and sell at ₦1580 on Tuesday 11th March, 2025, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate ₦1575
Selling Rate ₦1580
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1540
Lowest Rate ₦1512
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
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