The Nigerian government has made significant strides in enhancing the country's power infrastructure, with over 15,000 megavolt-amperes (MVA) of additional transmission capacity added to the national electricity grid between 2023 and 2026. This development is part of efforts to address longstanding financial and infrastructure challenges in the electricity sector. Minister of Power, Mr. Joseph Tegbe, disclosed this information at the Sixth Edition of the Power Correspondents Association of Nigeria (PCAN) Conference in Abuja.
The federal government has taken steps to support President Bola Tinubu's ambition of building a $1 trillion economy by addressing the nation's electricity challenges. As part of this effort, the president has approved a plan to settle verified legacy debts owed to generating companies. This initiative has raised N1.2 trillion to ease financial pressure on the companies and improve their capacity to pay for gas and maintain their plants. The Minister of Power, represented by his Special Adviser on Administration and Projects, Martins Olajide, outlined the government's roadmap for addressing the sector's challenges.
The government's roadmap focuses on four priorities: grid stabilisation, sector liquidity and sustainability, asset optimisation, and grid expansion and enhancement. The plan adopts a corridor-based approach to prioritise major economic centres for reliable, round-the-clock electricity supply. Additionally, over 2.8 million customers have been metered under the Presidential Metering Initiative (PMI), while the Rural Electrification Agency (REA) has connected universities, hospitals, and rural communities to solar power.
The Managing Director of FGN Power Company Limited, Mr. Kenny Anuwe, revealed that the federal government invested more than N10 trillion in Nigeria's Electricity Supply Industry (NESI) since the privatisation of the sector in 2013. This significant investment has helped sustain the electricity industry despite its challenges. Anuwe pointed out that public funding has remained insufficient to meet the country's power needs, highlighting the need for private investments.
To further enhance the nation's power infrastructure, construction has commenced on a new National Grid Control Centre in Osogbo to replace the existing facility built over 60 years ago. This development is expected to improve the efficiency and reliability of the national grid. Furthermore, newly installed substation equipment commissioned across several locations in the country has added over 1,300 MVA to Nigeria's transmission capacity.
The Minister of Power also disclosed that the government is seeking N19 billion in private investments to support the development of the power sector. This move is part of efforts to bridge the funding gap and ensure the sustainability of the sector. The government's commitment to addressing the nation's electricity challenges is evident in its various initiatives and investments in the sector.
As the government continues to implement its plans to enhance the power sector, Nigerians can expect improved electricity supply and reliability. The addition of 15,000 MVA to the national grid and the ongoing investments in power infrastructure are significant steps towards achieving this goal. The government's focus on grid expansion and enhancement, as well as its efforts to attract private investments, will be crucial in sustaining the sector's growth.
Key points
- The Nigerian government has added over 15,000 MVA of transmission capacity to the national grid between 2023 and 2026.
- The federal government has invested over N10 trillion in Nigeria's Electricity Supply Industry since 2013.
- The government is seeking N19 billion in private investments to support the development of the power sector.
