Nigeria has budgeted N344.10 billion (equivalent US$388,967,371.05) in 2024 to transform the country’s power sector to ensure regular power supply and also increase electricity access to unserved citizens.
Out of the budgeted amount, N336.88 billion will go into capital expenditure while the remaining N7.22 billion will go into recurrent expenditure.
The country hopes to introduce about 100 new power projects and continue with the 391 ongoing projects.
Africa’s largest economy has been struggling to keep the power sector running to keep the lights on.
With over 210 million people, it is sad to note that more than half of Nigerians do not have access to electricity supply from the national grid.
Nigeria has an energy generation capacity of about 13,000MW.
However, the country has been producing less power despite the high demand for power by industries and households.
The country’s current generation is around 4,000MW.
Nigerians have been unhappy about the situation and hope for a turnaround of the situation.
Speaking to Tunji Bolaji, Spokesperson for Chief Adebayo Adelabu, Minister for Power, he said President Bola Tinubu’s administration believes that one of the ways to further galvanise the economy is the provision of regular power supply to households and businesses in the country.
He said the current administration sees it as shameful that a country of over 200 million people is only transmitting and distributing about 4,000MW.
He said it is in line with the above that the Federal Government, through the Ministry of Power, is focusing on grid and off-grid power accessibility.
According to him, “Having mini-grids across communities in the country to serve the people like we recently had in Toro Community, Nasarawa State, where a hybrid-mini-grid was built to serve about 180,000 people in that community, is the focus of the current administration.
“We are also looking at building such mini-grids across some of our university communities, teaching hospitals and some underserved communities. Then, we are looking at renewable energy power generation across our zones. For our coastal areas, we are looking at wind energy, for our northern zones, we are looking at solar energy while in parts of the southwest and north-central where we have rivers, efforts would be on generating hydropower of about 500 kilowatts to five megawatts.
“When one takes the totality of all these, it would look as if we are starting from scratch.
“But for economic growth and industrial development, this is necessary,” he concluded.
Meanwhile, taking to X, formerly Twitter, after President Bola Ahmed Tinubu’s New Year message, Minister Adebayo Adelabu noted that the Ministry of Power and its agencies worked tirelessly to keep the lights on during the festive season.
“Our focus is now on taking decisive action to address critical challenges in the electricity sector.
“The initial three months involved diagnosis, stakeholder consultation, and strategy formulation. With a well-documented implementation plan in place, it’s now time to take decisive action targeted at enhancing distribution and transmission infrastructures,” he said.
Liquidity Challenge
According to him, the lack of liquidity remains a significant challenge in the electricity market saying, “We’re reviewing the implementation process of a cost-reflective tariff, while ensuring continued government subsidy for vulnerable members of society.”
Minister Adebayo also said closing the meter gap is imperative, and initiatives like the World Bank programmes and the Presidential Metering Initiatives would gain momentum in 2024.
He said his Ministry would intervene in distribution infrastructure, supplying transformers to communities without burdening citizens financially.
He added that rural electrification is also a priority, saying the Ministry would be focusing on solar-powered mini/micro-grids and street lights.
Transmission Infrastructure
On improving transmission infrastructure, the Minister said, “We’ve reactivated the Presidential Power Initiative (Siemens Project) to strengthen the national grid adding that Eastern and Western super grid projects will also be implemented to increase electricity supply to demand centers.”
Minister Adebayo Adelabu also disclosed that the Transmission Company of Nigeria would be reconstituted in the short term, separating Transmission services from System/Market operations.
In the medium to long term, regional grids would be established for effective management.
Power Theft And Vandalism
The Minister said tackling power theft and vandalism is paramount.
“We’ve informed the NSA of recorded cases, emphasising the need for joint efforts to protect our assets. This national responsibility requires collective action to eliminate setbacks,” he said
“As we embark on this transformative journey to bolster Nigeria’s electricity sector, we appreciate the collective effort of all stakeholders. Our commitment is unwavering, and we’re dedicated to overcoming challenges to ensure a reliable and sustainable power supply. The path ahead requires collaboration, and we urge citizens, Discos, State Electricity Boards, and private entities to join hands in achieving our shared goal. Together, we can create a resilient power infrastructure that propels economic growth and improves the lives of all Nigerians,” he stated.
Source: https://energynewsafrica.com