FG Commits $800M to Boost Power Infrastructure, Eyes 6,000MW by Year-End

FG Commits $800M to Boost Power Infrastructure, Eyes 6,000MW by Year-End

The Federal Government has announced plans to invest $800 million in improving Nigeria’s power infrastructure, focusing on the construction of sub-stations and expanding distribution networks under the Presidential Power Initiative (PPI).

This was disclosed in a statement by Mr. Bolaji Tunji, Special Adviser for Media and Strategic Communication to the Minister of Power, on Sunday in Abuja.

During a visit to the TBEA Southern Power Transmission and Distribution Industry in Beijing, China, the Minister of Power, Mr. Adebayo Adelabu, highlighted the investment, which will be split evenly between two regions. Lot 2 will receive $400 million, covering Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs), while Lot 3 will receive another $400 million, covering Abuja, Kaduna, Jos, and Kano DISCOs.

Adelabu, who was in Beijing for the China-Africa Cooperation Summit, expressed concern over the recurring power rejection by DISCOs, leading to a reduction in Nigeria’s power generation capacity from 5,170 megawatts to 3,770 megawatts. He, however, stated that the government is determined to achieve 6,000 megawatts by the end of the year.

The minister emphasized that the government is working with global partners like TBEA to revamp the country’s transmission and distribution systems and bolster renewable energy initiatives. He cited a historical challenge in the sector, noting that it took over 35 years for Nigeria to double its power generation from 2,000 megawatts to 4,000 megawatts, but under the current administration, output rose from 4,000 to 5,170 megawatts within a year.

Adelabu attributed the slow industrial growth to outdated and dilapidated transmission and distribution infrastructure, which has led to unreliable electricity for homes, businesses, and industries. He noted that over 59% of Nigerian industries operate off-grid due to a lack of trust in the national grid’s reliability.

The minister also provided updates on the government’s plan to build a “super grid” to support the envisioned transformation in the power sector. He stated that the president is in full support, with 90% of the necessary approvals already secured.

Meanwhile, TBEA President, Huang Hanjie, assured Nigeria of the company’s continued support, noting that TBEA operates in over 100 countries and has ongoing projects in Nigeria, including the Omotosho power plant in Ondo State. Hanjie praised the Nigerian government for the recent improvements in power generation and transmission, pledging TBEA’s collaboration in the ongoing power sector revolution.

By 2030, Nigeria aims to generate, transmit, and distribute 30 gigawatts of power, with 30% coming from renewable sources.