In a significant investment to the nation’s power sector, the Federal Government has announced plans to invest $800 million to beef up the nation’s power infrastructure; in the construction of substations and distribution networks. The investment, a key component of the Presidential Power Initiative (PPI), is aimed at addressing the longstanding challenges of inadequate electricity supply in Nigeria.
Power Minister Adebayo Adelabu made the announcement during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China. He emphasized the government’s commitment to transforming the power sector and improving the lives of Nigerians.
According to Adelabu, 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.
The Minister highlighted the urgent need for infrastructure upgrades, noting that the existing transmission and distribution networks are old and dilapidated. This has resulted in frequent power outages and disruptions, hindering economic growth and development.
Adelabu said: “More than 59 percent of industries in Nigeria are off the grid. They did not see the national grid as reliable. So, a lot of them now operate their own captive, self-generated power.”
The government’s investment in power infrastructure is expected to address these challenges and improve the reliability of electricity supply. By modernizing the grid and enhancing distribution capabilities, the PPI aims to create a more stable and efficient power system.
Government’s Efforts to Boost Power Generation
In addition to infrastructure upgrades, the Federal Government is also taking steps to increase electricity generation. Adelabu revealed that the government is on course to increase generation to 6,000 megawatts by the end of the year.
However, the Minister acknowledged that the current generation capacity is often hampered by the inability of the DISCOs to absorb the supply. This is due to various factors, including inadequate infrastructure and financial constraints.
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To address this issue, the government is working to improve the efficiency and financial viability of the DISCOs. This includes implementing reforms, providing financial support, and strengthening governance.
A Look Back at Nigeria’s Power Sector
Adelabu provided a historical perspective on Nigeria’s power sector, highlighting the country’s progress and challenges. He noted that Nigeria was able to generate 2,000 megawatts of electricity in 1984, but it took over 35 years to add an additional 2,000 megawatts.
“When this administration came in last year, we met around 4 gigawatts (4,000 megawatts) of power but within a year, we were able to generate a milestone of 5,170 megawatts adding about 1000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable,” Adelabu said.
The Minister emphasized the government’s ambitious target of achieving 30 gigawatts of power generation, transmission, and distribution by 2030. This includes a significant focus on renewable energy, such as hydroelectric power, solar energy, and wind power.
Power Infrastructure Upgrade – Super Grid
To support the expansion of the power sector, the government is also investing in the construction of a super grid. Adelabu explained that the existing national grid is not sufficient to meet the country’s growing energy needs.
“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,” Adelabu said.
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The Minister stated that the government has secured the necessary approvals for the super grid project and is making progress on its implementation. The construction of the super grid will improve transmission efficiency, enhance grid stability, and increase the capacity of the national grid.
If You Ask Me
The Federal Government’s $800 million investment in power infrastructure represents a significant step towards addressing the challenges facing Nigeria’s power sector. By increasing generation capacity, improving transmission and distribution networks, and promoting renewable energy, the government aims to provide reliable and affordable electricity to the country’s population.
The success of these initiatives will be crucial for Nigeria’s economic growth and development. By ensuring a stable and efficient power supply, the government can attract investments, create jobs, and improve the quality of life for its citizens.