MDAs spend ₦11.8bn on fuel in four months as rising petrol costs continue to increase operational expenses across federal government agencies.
Data obtained from the Open Treasury Portal showed that Ministries, Departments and Agencies of the Federal Government spent approximately ₦11.85 billion on fuel for vehicles and generators between January and April 2026. The figure represents a significant increase compared to the corresponding period in 2025.
The expenditure reflects growing energy costs faced by public institutions following increases in domestic fuel prices and developments in the global oil market. The Open Treasury Portal, which tracks government spending and budget implementation, recorded the payments under fuel-related operational expenses.
According to the data, spending on motor vehicle fuel rose substantially during the review period, while expenditure on generator and plant fuel also recorded notable growth. The increase highlights the dependence of many government agencies on fuel-powered transportation and electricity generation to sustain operations.
Budget allocations for fuel expenses also increased in 2026, reflecting expectations of higher energy costs throughout the year. Despite the rise in spending, only a small portion of the approved annual fuel budgets had been utilized as of April, leaving a significant balance available for the remainder of the fiscal year.
Beyond vehicle and generator fuel, spending on other categories such as aircraft fuel, sea boat fuel, and fuel for transport equipment also recorded sharp increases during the period. These expenditures contributed to the overall rise in government fuel-related costs.
Analysts say the trend underscores the impact of market-based fuel pricing on public sector operations. As Nigeria’s downstream petroleum sector remains largely deregulated, fluctuations in global oil prices and exchange rates continue to influence domestic fuel costs.
The development has renewed discussions on energy efficiency, alternative power solutions, and cost-management strategies within government institutions as authorities seek to balance operational needs with fiscal sustainability.
