The Federal Government of Nigeria has unveiled plans for an $800 million investment aimed at transforming Nigeria’s power sector.
The FG has planned to release the fund for the construction of substations and distribution networks under the Presidential Power Initiative (PPI).
The country’s Minister of Power, Adebayo Adelabu, made the announcement during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
The investment will be divided into two lots: $400 million for Lot 2, covering Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and $400 million for Lot 3, covering Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
Adelabu noted that Nigeria’s electricity generation peaked at 5,170 megawatts but had to be ramped down by 1,400 megawatts due to the inability of DISCOs to pick up the supply. He expressed regret, stating that the government aims to increase generation to 6,000 megawatts by the end of the year.
The minister attributed the challenges in the power sector to the fragility of the transmission and distribution infrastructure, which has become old and dilapidated. He revealed that over 59% of industries in Nigeria are off the grid, relying on self-generated power due to the unreliability of the national grid.
Adelabu assured that the administration of President Bola Ahmed Tinubu is committed to transforming the power sector. He highlighted achievements, including the generation of 5,170 megawatts, a milestone reached within the first year of the administration.
The minister outlined plans to achieve 6,000 megawatts of power by the end of the year and 30 gigawatts by 2030, with 30% from renewable energy sources. He also discussed the construction of the Western and Eastern super grid, necessary to support the vision for the power sector.
Huang Hanjie, president of TBEA, expressed his organization’s continued support for Nigeria’s government vision for the power sector, offering to share experience in energy provision. TBEA is currently working with the Omotosho power plant in Ondo State.
