By Fatou Dahaba
National Assembly members on Monday sharply questioned the government’s financial support for the National Water and Electricity Company (NAWEC) amid prolonged electricity blackouts across the country. During deliberations on the implementation and monitoring of the annual budget, lawmakers pressed Finance Minister Seedy Keita over the Ministry of Petroleum and Energy’s alarmingly low first-quarter spending rate.
The ministry recorded a mere 1 percent execution rate in the first quarter of 2026, one of the weakest performances among government institutions, despite the energy sector facing mounting challenges including frequent and worsening power outages. Lawmakers expressed frustration that such low disbursement occurred even as citizens grapple with unreliable electricity supply that affects businesses, healthcare, and daily life.
In response, Minister Keita defended the government’s position, insisting that the low execution rate did not reflect inadequate budgeting for NAWEC or the energy sector. He revealed that out of the ministry’s D1.5 billion allocation, D1 billion was earmarked as a direct subsidy to NAWEC, with the remainder covering operational expenses.
“The D1 billion subsidy was not disbursed in the first quarter but in the second quarter,” Keita explained. “The first installment of D250 million was paid on April 1, 2026. That is why the first-quarter figure appears so low. The 1 percent recorded relates largely to the ministry’s operational expenditure.”
The minister further stressed that the subsidy payments had “nothing to do with the electricity blackout,” adding that such outages were operational and technical issues best explained by NAWEC management itself.
Lawmakers also raised concerns about declining capital expenditure despite ongoing road construction and other infrastructure projects. Keita attributed this to alternative financing mechanisms, noting that many capital projects are funded outside the regular budget through the National Roads Authority levy and bonds issued by the NRA. This approach, he said, explains the lower capital spending compared to the same period last year.
NAWEC’s financial health came under further scrutiny when members inquired about payments under confirmed debts and centralized services. The minister clarified that D60.5 million paid under confirmed debts formed part of arrears settlement owed to NAWEC. He also corrected a D80 million entry in budget documents, describing it as payment of government arrears to NAWEC rather than a subsidy, and admitted it may have been a textual error in the original documentation.
Broader questions emerged about the energy sector’s debt structure and the government’s heavy reliance on servicing loans taken to expand electricity capacity.
Lawmakers urged faster progress toward involving independent power producers (IPPs) to reduce the national debt burden, noting that the government ultimately bears repayment responsibility for these obligations.
Minister Keita acknowledged that the debts of state-owned enterprises are recorded on the government’s books as part of the national debt stock. He explained that many are legacy debts accumulated over years and that financial conditions can worsen after loans are approved, forcing government intervention.
“Debt servicing remains one of the biggest expenditure pressures,” he told the Assembly, disclosing that between D1.3 billion and D1.4 billion was allocated in the quarter for debt service alone. This limits resources available for other critical sectors. The government, he added, is working to contain borrowing within agreed limits while boosting domestic revenue to free up funds for development.
Defending ongoing support for NAWEC, Keita noted that the utility’s current tariff structure falls short of covering operational costs, necessitating subsidies to keep electricity prices affordable for citizens. He acknowledged persistent arrears but described them as manageable through payment plans and cash flow strategies. In addition to the D1 billion subsidy, the government continues servicing NAWEC’s debts with multilateral institutions to ensure the utility remains operational.
The session highlighted growing parliamentary concern over energy sector governance and the need for sustainable solutions to Gambia’s chronic power supply problems. As outages persist, pressure mounts on both NAWEC and the government to deliver reliable electricity to citizens.
