The Minister of Finance and Economic Affairs, Seedy Keita, has told the National Assembly that the government has paid D80 million in outstanding arrears owed to the National Water and Electricity Company (NAWEC) and disbursed a further D1 billion subsidy as part of the 2026 budget implementation.
Providing an update on budget execution, Minister Keita said the payments were part of the government’s obligations to the state-owned utility and explained that variations in expenditure figures across quarters were largely due to the timing of disbursements.
He reported that Centralized Services recorded a budget execution rate of 13.23 percent, driven mainly by partial payments, including D80 million in arrears owed to NAWEC and D60.5 million in other verified liabilities. Additional allocations, he said, are expected to be released in subsequent quarters.
“A significant portion of the budget remains scheduled for disbursement in later quarters,” the minister told lawmakers.
Clarifying the D80 million payment, Keita explained that the amount represented arrears accumulated by government institutions for electricity and water services supplied by NAWEC.
“The 80 million is payment of arrears to NAWEC. Government buildings have arrears owed to NAWEC, and that is where the D80 million comes from,” he said.
The minister also disclosed that the D1 billion subsidy earmarked for NAWEC was paid during the second quarter rather than the first quarter, affecting the ministry’s execution rate for the reporting period ending in March.
According to him, the Ministry’s budget included a D1.5 billion allocation, of which D1 billion was designated as a subsidy for NAWEC. However, the payment was only made in April and therefore did not appear in the first-quarter expenditure report.
“That is why the overall execution rate was only one percent. The D1 billion allocation to NAWEC was paid in April instead of during the first quarter ending in March,” he explained.
Minister Keita assured members of the Assembly that the government remains committed to meeting its financial obligations while maintaining accurate and transparent fiscal reporting.
Addressing concerns about NAWEC’s continued reliance on government support, including subsidies, debt servicing, and sovereign guarantees, he reaffirmed the government’s commitment to the utility company.
“We assure the August Assembly that we have supported NAWEC by servicing all loans used to buy generators, not just through subsidies.” These loans are being serviced by the government of the Gambia,” he said.
