Nigeria to Invest $800m in Power Sector
The Federal Government says it plans to invest 800 million dollars in the construction of sub-stations and distribution networks as part of the Presidential Power Initiative (PPI).
This is contained in a statement issued by Mr Bolaji Tunji, the Special Adviser, Media and Strategic Communication to the Minister of Power in Abuja on Sunday.
Tunji said the Minister of Power, Mr Adebayo Adelabu, said this during a tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
He said that the minister was in Beijing for the China-Africa Cooperation Summit.
Adelabu said that the investment would be divided into two lots: 400 million dollars for Lot 2, covering Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and 400 million dollars for Lot 3, covering Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
The minister expressed concern over the rejection of power by Electricity Distribution Companies (DISCOs), which recently led to a reduction in generation capacity from a peak of 5,170 megawatts by 1,400 megawatts due to their inability to manage the supply.
He said that despite the setback, the government aimed to increase power generation to 6,000 megawatts by the end of the year.
Adelabu reaffirmed the government’s commitment to collaborating with world-class organisations like TBEA to realise President Bola Tinubu’s vision for the power sector.
”Especially in the areas of transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment.”
Adelabu said that Nigeria had in 1984 generated 2,000 megawatts, and it took over 35 years to add another 2,000 megawatts.
He said that under the current administration, power generation increased from 4,000 megawatts to 5,170 megawatts within a year.
The minister speaking on the problems in the power sector which had hindered industrial growth, said this was due partly to the fragility of the transmission and distribution infrastructure which had become old and dilapidated.
“This has led to a historical epileptic supply of Power to households, industry and businesses.
“More than 59 per cent of industries in Nigeria are off the grid. They did not see the national grid as reliable and dependable. So a lot of them now operate their own captive, self-generated power,” he said.
Adelabu said that the present administration was determined to transform the power sector, adding that a lot of activities had started that were gradually bringing back confidence in the sector.
The statement also quoted the President of TBEA, Huang Hanjie, as assuring the audience of the organisation’s continued support for Nigeria’s government vision for the power sector.
He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy.
“The company is not new in Nigeria, it is presently working with the Omotosho power plant, Ondo State, owned by the Niger Delta Power Holding Company (NDPHC).”
He said that TBEA would be willing to work with the Nigerian government to achieve its vision and contribute to the ongoing power sector revolution in the country.
