The Federal Government of Nigeria has announced an investment of $800 million aimed at enhancing the country's power infrastructure.
This initiative, part of the Presidential Power Initiative (PPI), will focus on constructing new substations and improving distribution networks across various regions.
Minister of Power, Adebayo Adelabu, revealed that the investment would be divided into two equal parts. "We are allocating $400 million for the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and another $400 million for the Abuja, Kaduna, Jos, and Kano DISCOs franchise areas," he stated during a recent tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
Adelabu expressed concerns over the current state of power distribution, highlighting issues with power rejection by DISCOs. "This has led to a reduction in generation capacity from a peak of 5,170 megawatts by 1,400 megawatts due to their inability to manage the supply," he explained.
Despite these challenges, the government aims to increase power generation to 6,000 megawatts by the end of the year.
The Minister also emphasized the government's commitment to collaborating with world-class organizations like TBEA to realize 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," Adelabu added.
Reflecting on Nigeria's historical power generation issues, Adelabu noted, "Nigeria had in 1984 generated 2,000 megawatts, and it took over 35 years to add another 2,000 megawatts." However, under the current administration, power generation increased from 4,000 megawatts to 5,170 megawatts within a year.
"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."
Looking ahead, the government has ambitious plans to achieve 30 gigawatts of power by 2030, with 30% coming from renewable energy sources. "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," Adelabu said.
The construction of a super grid is also on the agenda to support this 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," Adelabu explained. Huang Hanjie, President of TBEA, assured continued support for Nigeria's power sector.
"TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy," he said, commending the minister for the improved power sector since his assumption of office.
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