By Constance Athekame
The Federal Government has earmarked $800m for the construction of substations and distribution networks, a key component of the ambitious Presidential Power Initiative (PPI).
This was contained in a statement issued by Mr Bolaji Tunji, the Special Adviser, Media and Strategic Communication to the Minister of Power in Abuja yesterday.
Tunji said the Minister of Power, Mr Adebayo Adelabu, said this during a TBEA Southern Power Transmission and Distribution Industry tour in Beijing, China.
He said that the Minister was in Beijing for the China-Africa Cooperation Summit.
Adelabu said the investment would be divided into two lots: $400m for Lot 2, covering the Benin, Port Harcourt, and Enugu Distribution Companies (DisCos) franchise areas, and $400m for Lot 3, covering the Abuja, Kaduna, Jos, and Kano DisCos franchise areas.
The Minister voiced his deep concern over the issue of power rejection by electricity Distribution Companies (DisCos).
This issue, which led to a reduction in generation capacity from a peak of 5,170 megawatts by 1,400 megawatts, is a clear obstacle that the government is determined to overcome, he added.
He said that despite the setback, the government aimed to increase power generation to 6,000 megawatts by the end of the year.
Adelabu reaffirmed the government’s unwavering commitment to collaborating with world-class organisations like TBEA to realize President Bola Tinubu’s vision for the power sector.
“Especially in the transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment,” he said.
Adelabu said Nigeria had generated 2,000 megawatts in 1984, and it took over 35 years to add another 2,000 megawatts.
He stated that under the current administration, power generation had increased from 4,000 megawatts to 5,170 megawatts within a year, a significant leap.
*Laments 59% of industries in Nigeria are off grid due to epileptic supply
The Minister, speaking on the problems in the power sector that had hindered industrial growth, said this was partly due to the fragility of the transmission and distribution infrastructure, which had become old and dilapidated.
“This has led to a historical epileptic power supply 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. So, many of them now operate their own captive, self-generated power,” he said.
Adelabu reiterated that the present administration was resolute in its determination to transform the power sector, with many activities already underway that were 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 could generate a milestone of 5,170 megawatts.
“That is about 1,000 megawatts of power within the first year. It may look small, but this is commendable compared to the country’s history.
“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 2030, out of which 30 percent will be renewable energy,” he said.
The Minister said the construction of the super grid would require the national grid in its present state to support the vision for the power sector.
“If we look at the strength, the capacity, and the age of our existing network on the national grid, it cannot 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 I assumed duty, I can also tell you that the president fully supports this because it will improve our transmission network.
“It will also stabilise the grid and 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 the President of TBEA, Huang Hanjie as assuring the audience of the organisation’s continued support for Nigeria’s government vision for the power sector.
He said TBEA operates in 100 countries worldwide and would be willing to share its experience in providing energy.
“The company is not new in Nigeria; it is presently working with the Omotosho power plant, Ondo State, owned by the Niger Delta Power Holding Company (NDPHC),” he added.
Hanjie also commended the Minister for the improved power sector, evidenced by improved generation and transmission since his assumption of office.
He said TBEA would be willing to work with the Nigerian government to achieve its vision and contribute to the country’s ongoing power sector revolution.
