The Federal Government has announced plans to release $800 million for the construction of new power substations and distribution networks under the Presidential Power Initiative.
This move is part of ongoing efforts to enhance Nigeria’s power infrastructure and address chronic electricity supply issues.
The Minister of Power, Adebayo Adelabu, made this announcement during a facility tour of a power company in China, as reported by the National Television Authority on Sunday.
He emphasized that the new infrastructure will help resolve issues of load rejection by electricity distribution companies, which has hampered power distribution across the country.
According to the report, the initiative’s Lot 2 will cover the franchise areas of Benin, Port Harcourt, and Enugu distribution companies, while Lot 3 will focus on Abuja, Kaduna, Jos, and Kano distribution companies.
Adelabu revealed that on August 30th, power generation peaked at 5,170 megawatts. However, due to the DISCOs’ inability to absorb the supply, 1,400 megawatts had to be reduced. “This is regrettable, especially as the government is on track to increase generation to 6,000 megawatts by the end of the year,” he stated.
During a session with the management of TBEA, a power company in China, Adelabu reiterated the government’s commitment to collaborating with international firms to achieve President Bola Tinubu’s Renewed Hope vision for Nigeria’s power sector. This partnership aims to boost transmission and distribution, with a particular focus on renewable energy.
Adelabu also highlighted the need to modernize Nigeria’s outdated transmission and distribution infrastructure, which has been a major barrier to industrial growth. He noted that when the current administration took office, the country had a power generation capacity of around 4,000 megawatts. Within a year, that capacity increased by 1,000 megawatts to 5,170 megawatts.
“Our goal is to reach 6,000 megawatts by the end of this year, leveraging both hydroelectric and gas-fired power plants,” the Minister said. He further outlined the government’s ambitious plan to achieve 30,000 megawatts by 2030, with 30% of that coming from renewable sources. To support this vision, the construction of Western and Eastern super grids is deemed essential.
Nigeria’s power sector continues to face significant challenges, leading to unreliable electricity supply for over 200 million people. The national grid currently generates about 4,500 megawatts of electricity, a stark contrast to South Africa, which generates around 50,000 megawatts for a population of 59 million.
While the government’s target of 6,000 megawatts by the end of the year is a positive step, many industry experts believe it may not be enough to resolve the country’s deep-rooted power crisis.
