Electricity: Nigeria plans $800m investment in power substations, distribution networks ─Minister

*Chief Adebayo Adelabu, Minister for Power, says the Nigerian Government’s plan to invest further $800 million in the construction of substations and distribution networks is part of the Presidential Power Initiative

Isola Moses | ConsumerConnect

The Federal Government of Nigeria has disclosed its plan to invest further $800 million in the construction of substations and distribution networks as part of the Presidential Power Initiative (PPI).

Chief Adebayo Adelabu, Honourable Minister for Power said this during a recent tour of TBEA, a Chinese-based company manufacturing power transformers, and developer of transmission projects.

Bolaji Tunji, Special Adviser, Media and Strategic Communication to the Minister, in a statement issued Sunday, in Abuja, FCT, said Chief Adelabu was in Beijing for the China-Africa Cooperation Summit.

The Minister affirmed the West African country’s fresh investment would be divided into two lots.

According to him, these are $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 respectively.

Government’s commitment 6,000MW power generation by yearend

Minister Adelabu also stated that despite of the recent setback in the power sector of the Nigerian economy, the Federal Government is committed to increasing electricity generation to 6,000 Megawatts (MW) by the end of 2024.

He, however, expressed concern over the DisCos’ rejection of generated power, a situation the Minister noted recently led to a reduction in generation capacity by 1,400 megawatts — from a peak of 5,170 megawatts — due to their inability to manage the supply.

Adelabu related: “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.”

The Minister also assured Nigerian consumers that the government’s plan is by the end of the year, the power sector aims to achieve 6,000 Megawatts of electricity through a combination of hydroelectric power plants and gas-fired power plant in the country.

“We are also targeting 30 gigawatts of power to be generated, transmitted and distributed by year 2030, out of which 30 percent will be renewable energy,” said he.

Construction of a super grid

As regards the inherent challenges in the Nigerian power sector, which has hindered industrial growth over the years, Chief Adelabu said this was due partly to the fragility of the transmission and distribution infrastructure, which had become old and dilapidated.

He said: “This has led to historical epileptic supply of Power 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 and dependable.

“So, a lot of them now operate their own captive, self-generated power.”

According to him, in respect of the need for construction of “a super grid”, Adelabu clarified that the existing national grid in its current state could not support the vision for the power sector of the economy.

The Minister also remarked: “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.

“Though we have been on this since my assumption of duty, I can also tell you that the president is in full support of this because it will improve our transmission network.”

“It will also stabilise the grid and also expand the capacity and the flexibility of the grid.”

He added that 90 percent of the approval required to accomplish this is in place, and would be concluded soon.