The Federal Government has announced plans to invest $800 million in constructing substations and distribution networks as part of the Presidential Power Initiative (PPI).
This was stated in a release by the Special Adviser on Media and Strategic Communication to the Minister of Power, Mr. Bolaji Tunji, on Sunday in Abuja.
According to Tunji, the Minister of Power, Mr. Adebayo Adelabu, made this announcement during his tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
He noted that the minister was in Beijing to attend the China-Africa Cooperation Summit.
Adelabu outlined that the $800 million investment will be divided into two segments: $400 million for Lot 2, which covers the franchise areas of the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs), and $400 million for Lot 3, covering the franchise areas of the Abuja, Kaduna, Jos, and Kano DISCOs.
The minister raised concerns about the power rejection issue by Electricity Distribution Companies (DISCOs), which recently led to a decrease in generation capacity from a peak of 5,170 megawatts by 1,400 megawatts due to their inability to manage the supply.
Despite this setback, he stated that the government aims to increase power generation to 6,000 megawatts by the end of the year.
Adelabu emphasized the government’s dedication to working with reputable organizations like TBEA to fulfill 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,” he added.
Adelabu pointed out that Nigeria generated 2,000 megawatts of power in 1984, and it took over 35 years to add another 2,000 megawatts.
He highlighted that under the current administration, power generation increased from 4,000 megawatts to 5,170 megawatts within a year.
Discussing the challenges in the power sector that have hindered industrial growth, the minister attributed these issues partly to the aging and deteriorating transmission and distribution infrastructure.
“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 affirmed the current administration’s determination to transform the power sector, noting that several initiatives have been launched that are gradually restoring 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 hydroelectric 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.
Regarding the construction of the super grid, the minister mentioned that the current national grid cannot support the power sector’s vision.
“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 Huang Hanjie, President of TBEA, as assuring the audience of the organization’s continued support for Nigeria’s vision for the power sector.
He stated that TBEA operates in over 100 countries worldwide and is eager to share its expertise in energy provision.
“The company is not new in Nigeria; it is presently working with the Omotosho power plant in Ondo State, owned by the Niger Delta Power Holding Company (NDPHC).”
Hanjie also praised the minister for the improvements in the power sector, as evidenced by enhanced generation and transmission since his tenure began.
He added that TBEA is keen to collaborate with the Nigerian government to achieve its vision and contribute to the ongoing transformation of the power sector in the country. (NAN)