Abuja, Sept. 2, 2024 – The federal government is to invest $800 million for development of substations and distribution networks under the Presidential Power Initiative (PPI).
Adebayo Adelabu, the Minister of Power, disclosed this on Sunday in a statement he issued during a tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China, during the China-Africa Cooperation Summit.
Adelabu said the investment would be divided into two lots of $400 million for Lot 2 which covers Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and another $400 million for Lot 3 which covers Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
He raised concerns over power generation by Electricity Distribution Companies (DISCOs) which recently reduced generation capacity from a peak of 5,170 megawatts to 1,400 megawatts due to their inability to control supplies.
The minister said that in spite of the setback, the administration was determined to expand power generation to 6,000 megawatts by the end of the year.
Adelabu underlined the government’s commitment to working with world-class organisations like TBEA to realise President Bola Tinubu’s vision for the power sector.
He said Nigeria had in 1984 generated 2,000 megawatts, and it took over 35 years to add another 2,000 megawatts.
The minister said power generation had increased from 4,000 megawatts to 5,170 megawatts within a year under this administration.
He said the problems in the power sector was due partly to the fragility of the transmission and distribution infrastructure which had become old and dilapidated.
“This has led to 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 current 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.
“When this administration came on board in 2023, we met about 4 gigawatts (4,000 megawatts) of power, but within a year, we were able to generate a milestone of 5,170 megawatts.
”That is about 1, 000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable”.
”Our plan is by the end of the year, we aim to achieve 6,000 megawatts of power through a combination of hydro electric power plants and our gas- fired power plant.
”We are also targeting 30 gigawatts of power to be generated, transmitted and distributed by year 2030 out of which 30 per cent will be renewable energy,” he said.
On the construction of the super grid, the minister said the national grid in its present state could not support the vision for the power sector.
“If we look at the strength, the capacity and the age of our existing network on the national grid, it cannot really support our vision for the power sector, hence the need for the construction of the Western and Eastern super grid.
”Though we have been on this since my assumption of duty, I can also tell you that the president is in full support of this because it will improve our transmission network.
“It will also stabilise the grid and also expand the capacity and the flexibility of the grid as 90 per cent of the approval required is in place and will be concluded soon,” he said.
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).”
Hanjie also commended the minister for the improved power sector as evidenced in improved generation and transmission since his assumption of office.
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.
