Nigeria To Spend $519 Million On New Power Projects

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Nigeria To Spend $519 Million On New Power Projects
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The Federal Government, has concluded arrangements to invest N198.28 billion (US$519.69 million) on various capital projects in the power sector in different parts of the country in 2021.

The projects is expected to further improve the country’s power generation capacity and distribution efficiency which has for a long time remained inefficient, greatly hampering efforts to increase energy access in Nigeria.

To further improve the country’s power generation capacity and distribution efficiency, the Government of Nigeria has put plans in place to invest N198.28 billion (US$519.69 million) on various capital projects in the power sector in different parts of the country in 2021.

This, the government said has for a long time remained inefficient and greatly hampering efforts to increase energy access in Nigeria

The country currently generates between 4,000 megawatts MW, and 5,000MW, due to inefficiencies, despitethe her total installed power generation capacity of about 13,000MW.

The Managing Director of the Niger Delta Power Holding Company, NDPHC, ChieduUgbo, said,“Out of the 13,000MW installed capacity, 8,000MW is available and ready to run but we are doing less than 5,000MW today”.

As a corrective measure, different sectors in the power industry have been mapped out to partake in the US$519 millon fund for capital projects in the 2021 budget proposal that was recently submitted to the National Assembly.

The Federal Ministry of Power will make the largest investment as it targets to invest US$456 million on capital projects during the period.

The National rural electrification managed by the Rural Electrification Agency will invest a total of US$46.88 million on power infrastructure development in rural communities.

In addition to this, the Nigerian Electricity Regulatory Commission plans to invest N294.1m (about US$774,000) on capital projects, while capital projects to be handled by the Nigerian Electricity Management Services Agency will gulp N441.1m (about US$1.16 million).

Cumulatively the total allocation for capital projects to be handled by the Transmission Company of Nigeria, as contained in the budget, will amount to N4.69bn (about US$1.23 million).

Also, the capital outlay projected for 2021 by the Nigeria Electricity Liability Management Limited is N914.87m (about US$2.40 million), while the National Power Training Institute targets to invest N294.1m (about US$771,000).

The Federal Government over the years has been striving to grow the nation’s power generation and supply.

Ugbo, projected that the country’s power supply would as a result of the recent investments in the sector, increase from 5,000MW to 7,000MW next year.

He said that that the contract granted to German conglomerate Siemens by the Presidential Power Initiative would help boost the country’s electricity sector and grow the quantum of power on the grid.

Ugbo explained that what Siemens had come to do through the project is to help clean up the networks and improve the efficiency of electricity transmission.

He said all the technical loses would be cleaned out once the project is completed, adding that commercial loses would be resolved and the collection by way of metering would be done.

“So in the next one year or thereabout, we will be able to get at least 7,000MW of that taken up and served to Nigerians,” Ugbo stated.

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