Posted by As part of the Presidential Power Initiative (PPI), the Federal Government intends to allocate a sum of 800 million dollars towards the development of substations and distribution networks.
Mr. Bolaji Tunji, the Special Adviser for Media and Strategic Communication to the Minister of Power in Abuja, disclosed this information in a statement released on Sunday.
Tunji stated Mr. Adebayo Adelabu, the Minister of Power, made this statement while visiting the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
His statement indicated that the minister was present in Beijing to attend the China-Africa Cooperation Summit.
Adelabu stated that the investment will be split into two tranches: $400 million for Lot 2, which encompasses the franchise divisions of Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs), and $400 million for Lot 3, which encompasses the franchise territories of Abuja, Kaduna, Jos, and Kano DISCOs.
The minister voiced apprehension over the refusal of Electricity Distribution Companies (DISCOs) to accept electricity, resulting in a recent decrease in electric generation capacity from a maximum of 5,170 megawatts to 1,400 megawatts. This reduction was attributed to their incapacity to effectively handle the supply.
Notwithstanding the setback, he stated that the administration intends to augment power production to 6,000 megawatts by the end of the year.
Adelabu reiterated the government’s dedication to form partnerships with top-tier organisations such as TBEA in order to achieve President Bola Tinubu’s vision for the power industry.
“particularly in the domains of power sector value chain transmission and distribution, as well as Nigeria’s renewable energy sector.”
According to Adelabu, Nigeria’s electricity generation in 1984 amounted to 2,000 megawatts, and in the subsequent 35 years, an additional 2,000 megawatts were added.
According to him, the electricity generation under the present administration has expanded from 4,000 megawatts to 5,170 megawatts in just one year.
Regarding the issues in the power sector that have impeded industrial development, the minister attributed this partially to the vulnerability of the outdated and deteriorated Transmission and distribution infrastructure.
“This has resulted in a historical anomalous provision of electricity to households, industry, and businesses.
Approximately 59 percent of industries in Nigeria operate without access to the power grid. They perceived the national grid as lacking reliability and dependability. “A significant number of them currently manage their own captive, self-generated power,” he announced.