Power Sector Recieves a whooping Six Billion Dollars Funding from Federal Government | AfriTV Online

The Federal Government has revealed that in the past half decade, that over N254 billion had faded away to nothingness following the incapacitated nature of the nation's electricity industry to realize it's full potentials by at least producing a max...

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Power Sector Recieves a whooping Six Billion Dollars Funding from Federal Government

Published by: A. Odean
08/26/2020 11:21 AM

The Federal Government has revealed that in the past half decade, that over N254 billion had faded away to nothingness following the incapacitated nature of the nation's electricity industry to realize it's full potentials by at least producing a maximum of 12,000 megawatts. This has been written off as a consistent problem due to the fact that there has been a blocking of proper funding for infrastructure to aid the national grid.

 

Mr Sale Mamman, the Minister for Power, who made the revelation in a report which marked his one year in office, said that as a market in transition, the sector has been experiencing singnificant tremendous troubles. However, he has claimed that the national grid has reached a new high of about 420.30MW which as he claimed also, is the highest the country's electricity grid has produced.

 

Following the Minister's report on lack of infrastructure, FG responded by securing the cumulative sum of $6.150 billion for powering the sector. The sum will be utilized by the power sector to fund the various capital projects in it and thereby improve the general production of electricity from the grid all around the nation.

 

 

“Infrastructure development is critical for the development of the power sector. The sector needs a reliable infrastructure to connect supply chains and efficiently move electricity from generation to households.

 

“Due to lack of infrastructure, the sector is unable to effectively utilise its generation capacity of over 12,000MW and incurred over N254 billion as the cost of unutilised capacity.

 

“However, power infrastructure is capital intensive in nature. Federal government allocation alone is inadequate to cater to the huge funding requirements.

 

“It on this basis that this administration developed an innovative approach of sourcing funding needed to execute critical infrastructural development needed for the sector.

 

“I am glad to state that to date, a total sum of $6.150 billion has been secured for infrastructural development” The Minister for Power said in a long speech.

 

 

Furthermore, following the funding, the Federal Government noted that a $550 million facility had been secured for the Nigeria Electrification Project (NEP) from a World Bank and African Development Bank (AfDB) arrangement. It included another $1.7 billion to make sure that the power industry becomes more efficient and is capable of meeting theneeds of over 220 million Nigerians as well as stakeholders in the sector. Emphasising that with the $6.150 billion in funding, the incumbent administration in question has commenced the implementation of critical infrastructure which will ensure that the country achieves it's generation, transmission, and distribution of 25,000MW of electricity. It has stated that this goal will be achieved at least by 2025.

 

In disintegrating the funds, it was disclosed that the Transmission Rehabilitation and Expansion Programme (TREP) will consume $1.6 billion while the Siemens deal would swallow $2.3 billion. When installed and positioned, FG reported that the expected infrastructure will ebb the constraints and impediments in the system, thereby enabling a smooth wheeling capacity of power sufficient to hoist industrial growth in the country as formerly envisioned by the Economic Recovery and Growth Plan (ERGP) back in 2017. S

 

as reported, it said that a Special Purpose Vehicle (SPV) called FGN Powerco is in the process of being set-up following President Muhammadu Buhari’s approval, which will serve as repository for the project’s accidental encumbrance for responsibility.

 

“We have also constituted the Nigerian Project Management Office (PMO) with the sole responsibility of providing project management of the project on behalf of the Nigerian Government.

 

“Additionally, in a complementary way, we are also implementing the Transmission Enhancement Programme. The Federal Ministry of Power working with key development partners; World Bank, AfDB, JICA have raised $1.6 Billion for Transmission Rehabilitation and Expansion Programme (TREP), which is ongoing now with major projects.”

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