Tag: POWER

  • $10b more for power

    $10b more for power

    • Money is only a part of the sector’s problem

    Most Nigerians will, understandably, shrug off the latest push by the Federal Government for a $10 billion injection to bail out the beleaguered power sector. They ought to be forgiven the cynicism if only on account of the billions of dollars known to have been poured in by successive governments since 1999, with no commensurate results.

    Yet, as tempting as the stance is, the fact, and which remains undeniable, is that the latest push to salvage the sector stands no chance without massive injection of funds to upgrade and modernise its systems. 

    Only last week, the Minister of Power, Adebayo Adelabu, told the Director-General of the Infrastructure Concession Regulatory Commission, Jobson Oseodion Ewalefoh, on the latter’s courtesy visit, that the sector requires at least $10bn over the next 10 years to achieve a 24-hour power supply across the country.

    Apparently intent on passing the message of the improbability of the government going it alone, the minister had framed the government’s dilemma thus: “Can the government do it alone? No! This is why we need to marshal private sector funds while still retaining government interest and ownership. This is where ICRC comes in. We need to collaborate with the private sector, and the best way to do this is through concessions.”

    Most Nigerians would agree that the sector needs a critical rescue. The main issue is whether our penchant to throw money at problems will make a fundamental difference. We saw this during the Obasanjo administration during which it went on a procurement binge without as much thought to those basic infrastructures that would be needed to deliver the equipment to site, let alone any consideration for their seamless integration, post-installation. Most of them ended tragically in the bonded warehouses of the Nigerian Customs Service with all manner of alibi thrown about to explain the situation.

    The Jonathan administration fared no better. Under it, the unbundled power entities were handed over to firms that possess neither the financial muscle nor the technical expertise to run them, hence the current tragic situation that the country has found itself. 

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    This is why we couldn’t agree more with the ICRC Director-General that whereas while funding is crucial to its turnaround, the challenges facing the power sector are complex and extend beyond finances. In fact, merely by the billions of dollars that the sector has gulped in recent years, the money issue would certainly seem the minor part. Corruption, incompetence mixed with a good dose of bad faith would seem to have been the greater plagues that have dogged the sector.

    Which is why it can no longer be business as usual. At this time, the burden is on the government to explain to Nigerians in clear details, how the proposed $10 billion will be utilised and on what terms. This goes beyond the routine promises on paper but express justification of every item of expenditure, to ensure value for every kobo spent.

    After all, the government, to our understanding, is already known to be pushing aggressively the Public Private Partnership model as indeed other initiatives to divest itself of its current strangle-hold on the sector. Again, if our understanding is that a major part of the plan is for the states to assume greater role in the business of electricity generation and distribution by whatever arrangement they deem as necessary, the other puzzle, and which we think requires clarification, is the

    minister’s glib reference to government retaining its interest and ownership of the sector. Surely, this cannot be the goal.

  • ‘Effective metering will boost Power sector investments’

    ‘Effective metering will boost Power sector investments’

    Former Head of Department of Electrical, Electronic and Communications Engineering at College of Engineering in Bells University of Technology, Ota, Ogun State, Abraham Amole, has stressed the need for effective metering system to enhance further investment in power.

    The don spoke in Lagos while delivering a lecture: “Improving Metering System for Commercial Viability & Service Delivery in Electricity Sector in Nigeria,” at 2024 lecture and awards of Society of Engineers.

    He noted that  metering  can be made effective through enlightenment and making people understand meters would offer them advantage of paying for what they consumed.

    Amole stressed effective metering aids planning, adding there  are  people willing to be metered, but the utility company cannot reach them. He said with effective housing planning, the utility company can reach every consumer.

    The guest speaker noted the case of consumers not willing and ready to pay due to the economic situation.

    Amole called for upgrade of the electrical network system to improve the power sector.

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    Margaret Oguntala, society’s president, represented by Akintayo Akintola, praised the Lagos branch for improving the branch.

    Akintola said the society will ensure Nigeria’s engineers contribute to development and enhancement of infrastructural quality in the country.

    He noted the society will promote ethics of engineering education and enhance quality of engineering practice.

    The representative said the society engaged government and stakeholders on  electricity tariff hike and the need to communicate to citizens.

    He  said it is  essential government aligns the benefits behind tarrif increase, such as improving service quality, infrastructure and long term sustainability of the sector.

  • Residents, business owners decry one week power outage in Aba

    Residents, business owners decry one week power outage in Aba

    Residents and business owners in Aba, the commercial nerve of Abia State have decried the loss that they have suffered following a seven-day power outage in the commercial nerve of the state.

    Our correspondent reports that the total blackout being witnessed in the city started in some parts of Aba on Saturday, while many part of the city saw power supply last on Sunday, last week.

    The Nation investigation has it that, contrary to the general belief that residents of Aba now enjoy 24hrs power supply, the majority of electricity supply to home are being rational as some electricity users are still being serviced by the Niger Delta Power Holding (NDPH), through the Transmission Company of Nigeria (TCN), months after the Vice President, Kashim Shettima had commissioned two gas-powered turbines at the power plant earlier this year.

    Some of the residents and business owners that spoke to our correspondent on Friday lamented the loss that they have suffered in the past three days.

    Both Mrs. Franca Gideon and Mr. Christian Okoro, decried the damage that they suffered in their homes following the unannounced power outage.

    Gideon said that she left some food in the refrigerator for her family before travelling to her hometown for the August meeting on Friday, only for her to see that the entire food packed in the refrigerator on her return to Aba on Tuesday got spoiled.

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    She said that the family had resorted to daily cooking of food which she said costs the family fortune.

    She further accused Aba Power Limited (APL) of charging them exorbitantly with the continued distribution of estimated bills.

    This is even as she wants the management of Aba Power to intensify the distribution of prepaid meters to their customers who, she said, are choking with their estimated bills.

    Mr. Okoro, a fashion designer, said buying  petrol at N900 per liter was biting hard on their businesses as they spent more running their machines on genthe erator for the past six days.

    According to Okoro, he uses at least  20 liters of fuel every day, stating that he had spent ₦108,000 on fuel in the past six days as they buy fuel at ₦900 per liter

    Explaining the power outage, APL said the blackout was caused by a combination of factors, including persistent gas shortages, acts of vandalism, and the damaged TCN line. “We understand the frustration and inconvenience that you may have experienced, especially with the recent power outages,” said the management.

    To address the issues, APL said they were working to secure a stable gas supply, strengthen its infrastructure, and collaborate with relevant stakeholders to restore power supply.

  • The transience of power

    The transience of power

    The image of former presidents Muhammadu Buhari and Goodluck Jonathan at yesterday’s Council of State meeting presided over by President Bola Ahmed Tinubu is another illustration of how transient power is.

    It was also a testament to the continuity of governance, even as individuals change.

    The Council, a body of former leaders and current officeholders, serves as a poignant reminder that leadership is not permanent.

    It is a baton passed from one to the next, with each leader contributing their chapter to the nation’s history.

    In the image, Dr. Jonathan leads, followed closely by Gen. Buhari, both smiling as they walk past the imposing presidential seal.

    Once a symbol of the authority they held, the seal now belongs to another.

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    In between them is a chair either would have sat on were they in charge, an aide waiting to help them adjust it. This time, they merely walked by.

    The president’s chair is empty, waiting for its current occupant.

    The scene is a powerful visual metaphor for the fleeting nature of authority.

    The two once-powerful men now move through the corridors of power as statesmen, no longer as the ultimate decision-makers who had multiple aides and appointees at their beck and call.

    It is a lesson to public officeholders that leadership is temporary and that it is what they do while in position – their legacies – that will be remembered.

  • Power generation records 25% increase, says FG

    Power generation records 25% increase, says FG

    The Minister of Power, Chief Adebayo Adelabu, said electricity generation has soared by 25% within a year of taking over the affairs of the sector.

    He said the Nigerian Electricity Supply Industry (NESI) recorded a transmission of 5105MW on 27th July 2024, the highest in the last three years.

    Adelabu noted the capacity had always hovered

    around 4000MW or below.

    He was hopeful the sector will hit 6,000MW by December 2024.

    Adelabu was with counterparts at the Ministry of Environment, Balarabe Abbas Lawal; Water resources and Sanitation Engineer Joseph Utsev; Budget and Planning, Atiku Bagudu; Minister of State (Gas) Petroleum Resources, Heineken Lokpobiri at the inaugural meeting of the Inter-Ministerial Power Sector Working Group held at Power House, Ministry of Power, Abuja.

    He said: “But within a year of taking over, we have had about 25 percent increase. We are actually on the track towards achieving the President’s instruction to us that by the end of December, we must achieve a landmark generation and transmission of 6000Mega Watts.”

    With one voice, the myinisters emphasised the importance of the power sector in achieving economic growth and industrialisation.

     They also highlighted the need for collaboration in tackling the challenges that could hinder the power sector from achieving full potential.

    Addressing the Ministers, Adelabu emphasized the importance of the power sector as a major driver of economic growth adding that this was in tandem with the vision of President Bola Tinubu for the power sector who sees the power sector as the driver of the other sectors of the economy.

     “The President meant his words that he would give us all the support, all the backings and the inspirations we require to turn around this sector. He has kept his word since he assumed office. The improvement we have witnessed in the power sector is not unconnected to the backing and support of the President to all the policies and all the activities of the Ministry. And we are grateful for all the support. Just few days ago, July 27 specifically, we successfully generated and transmitted 5105 megawatts of Power, the highest ever witnessed in the last three years. The capacity before now had always hovered around 4000megawatts or below.

    According to Adelabu who spoke on the reason for setting up the ministerial working group, said the power ministry is on the right track towards achieving the presidential mandate.

    He said, “We will not only focus on generation and transmission but also distribute it to the doorsteps of households, of businesses, of institutions and of industries in Nigeria. So that they can feel the reforms and transformation in the power sector. “Having realized this, we believed that power is not something that should be left alone to the Ministry of Power and its agencies because there are lots of supportive ministries without which we cannot achieve our mandate.”

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    He noted that there had been a lot of informal meetings, gathering and conversation regarding activities in the power sector and how to inter-relate and inter depend on each other. “We now felt we needed to bring ourselves together in a formal, official setting where all these issues would be discussed and everybody would be on the same page.

    Adelabu said, presently, 75 percent of Nigeria’s power generation comes from power gas plants while about 25 percent comes from the hydro-electric power plants. “We have our large and small dams everywhere and we are still counting. At the same, we are focusing on generating power in a sustainable and environment-friendly manner. This is why we talk about renewables, through solar, wind and small dams, from this, you will know that the Ministry of Water resources is key to the success of the power sector and they have been doing wonderfully well. That is why they had to be part of the Inter-ministerial power sector team.

    The Minister further underscores the importance of gas in power generation. He said the “Thermal generation goes with Gas. Gas availability in terms of quality, transportation and availability is key to all our power plants.

    “The problem we had in January and February that led to shut down of Generating Companies (GENCOS) and blackout was due to short supply of gas in terms of quality and quantity, including pipeline vandalization.

    “The Petroleum resource ministry is key to the raw material we need to generate over 70 percent of power in the country. So if we do not cooperate, we do not collaborate, we do not partner, success would be far in the power sector,  that is why we the Minister of State, Gas as a key member of this committee.”

    The Minister also spoke on the focus on renewable energy source and clean power. “ We are migrating to more environmentally-friendly energy sources from our natural environmental-  from sunshine, small dams, desert and offshore wind and supporting us in this regard is the Federal Ministry of Environment”.

    He noted the importance of finance in achieving the Power sector objectives. He said it was on the basis of that that Ministries of Budget and National Planning and Finance were also incorporated into the Inter-ministerial working committee.

    Adelabu acknowledged some Departments, Agencies and Parastatals, that are also important in achieving the power sector objectives such as the Bureau of Public Enterprise (BPE), National Council on Climate Change (NCCC), Nigeria Inland Waterways Authority (NIWA),  Nigeria Upstream Petroleum Regulatory Commission (NUPRC) including the Special Adviser to the President on Power and Infrastructure who is also a member adding that if there is need to incorporate other agencies, it would be one.

    On the terms of reference of the group, the Minister said it is to activate seamless power sector liquidity and financing.

     Also to provide guidance in the governance structure particularly in the electricity Distribution Companies (DISCOs), to also look into “our energy transition programme, how do we transition into our net zero emission target in year 2060. We are working with the Ministry of Environment and NCCC and also focusing on our vision 30-30-30 by year 2030, which is to generate 30000 megawatts of Power, out of which 30 percent will come from renewable energy in year 2030.

    He also spoke on areas that would be covered such as the Intergrated Resource Planning (IRP) in order to ascertain the national power need and how to achieve it.

    Also speaking, the Minister of Water Resources and Sanitation, who was in attendance with the Minister of State in the Ministry Hon. Bello Goronyo acknowledged the importance of collaborating with the Power Ministry. “Ministry of Water Resources and the Ministry of Power are like brothers and sisters and we will do everything possible to work together to achieve the renewable energy agenda of the President in making life better for Nigerians”.

    Minister of the Environment who was represented by the Minister of State, Hon Iziaq Adekunle Salako spoke similarly, while emphasizing the importance of the Power Sector in economic development. “There is no doubt that power is central to everything. Virtually everything we do these days have elements of Power. So, we need to take the power sector very seriously. It is central to everything that we do”. 

    He emphasized the importance of the environment ministry adding that power generation, transmission and distribution have impact on the environment. “The Ministry of Environment is essentially a regulator in this process through some of our agencies and the Ministry”.

     He noted that in all the power sector value-chain process, waste is generated. “And how to manage this waste is important to us. As we go-ahead to develop our power sector, we are also developing a process to manage the waste that will come out”, he said.

  •  ‘Ikere Gorge, Oyan dam to boost hydro power supply’

     ‘Ikere Gorge, Oyan dam to boost hydro power supply’

    Managing Director and Chief Executive Officer of Ogun-Oshun River Basin Development Authority (OORBDA), Dr. Adedeji Ashiru, has said Ikere Gorge Dam at Iseyin, Oyo State and Oyan River Dam in Odeda Local Government of Ogun State would boost hydro power supply to communities.

    He spoke during a visit to the two dams while touring projects under the agency.

    Ashiru decried the obsolete turbines at Oyan Dam since 1983 to generate nine megawatts.

    Speaking on Ikere Gorge Dam, he said “this multipurpose dam is a game-changer, providing irrigation for agriculture, potable water for communities and to generate electricity through hydroelectric power “.

    At Federal Polytechnic, Ilaro where the authority is designing a dam at the school’s estate, Ashiru told the Deputy Rector, Ademola Lasisi and senior officials he was visiting to see the site for the dam to ensure the project starts in earnest.

    The deputy rector, representing the rector, earlier commended the authority for the initiative.

    He said the project would solve the school’s perennial water problem.

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    Ashiru and his team were also at the palace of Ajalaiye of Ilugun, South Ijebu, Oba Oluseyi Olusanu, Tolulade Ilufemiloye, Atunlute 1 in Ijebu North East of Ogun State after visiting irrigation site.

    He assured Oba Olusanu of President Bola Tinubu’s resolve to ensure food sufficiency in the country, and requested for release of land for irrigation project in the community.

    The monarch thanked the team for the visit, promised that “the community will back President Tinubu by giving support to the authority.

    Earlier, at a meeting with Osun State Governor, Ademola Adeleke, Ashiru asked and got the governor’s consent the authority would get a conducive enviroment to operate.

    The governor directed the Commissioner for Water Resources and Agriculture to visit Iragbiji Dam site and make it accessable to the authority.

    “As a government, collaboration with the river basin will enhance our push to secure food security” Adeleke said.

  • N6tr public power revenue will guarantee stable power, says minister

    N6tr public power revenue will guarantee stable power, says minister

    Nigerians spend some N30 trillion yearly on self-generated, off-grid electricity due to inadequate public power supply.

    The nation could however save more than three quarters of this annual spending as investments in national grid system and increase in public power supply revenue to N6 trillion will guarantee stable power supply.

    In a stack portray of the power sector mismatch, the entire annual revenue of the Nigerian Electricity Supply Industry (NESI) in 2023 was about N1 trillion.

    Minister of Power, Adebayo Adelabu yesterday painted a vivid illustration of the power sector challenge, underlining the need for reforms and long-term investments to ensure stable supply.

    Adelabu spoke on “Navigating Nigeria’s Pathway to Achieving Energy Security Sustainability on the Journey to Net Zero” in Abuja at the 2024 Nigerian Oil and Gas (NOG) conference.

    He outlined that as against N30 trillion being spent on generation of electricity from diesel, petrol, gas and generators by individuals and companies, an increase of N5 trillion in revenue from national grid system would ensure round-the-clock electricity supply nationwide.

    Citing many studies on the power sector to buttress his points, Adelabu noted that a study in 2023 had indicated that N16.5 trillion was spent on diesel, petrol and servicing of power generators.

    “If you know how much people spend buying diesel, buy petrol, buy generators, servicing them in a year… The last study we had in 2023, a total of N16.5 trillion was spent on diesel in power generation. Even a number of the industries are off the grid.

    “So spending in the sector off the grid is close to N30 trillion. The revenue for the entire industry, the grid, the entire power sector was just N1 trillion for 2023, all that went to generation companies, transmission company and the distribution.

    “The informal spending on generation, in diesel, petrol, was close to N20 trillion. Even if it is just a quarter of that is out in the official power sector, we are talking incremental revenue of N5 trillion, that will push the sector revenue to N6 trillion. Significantly, we are going to have uninterrupted 24/7 power supply,” Adelabu said.

    He noted that confidence in the sector has been restored as all the manufacturers that cut off from the national grid have been reconnected having realised that the ‘Band A’ tariff is cheaper than private electricity generation.

    He added that the last study revealed that ‘Band A’ customers were enjoying uninterrupted power supply.

    According to him, whereas the ‘Band A’ tariff is N206/kwh, electricity generation with gas costs N290/mwh, petrol cost N450per mwh, while diesel cost N900mwh.

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    He insisted that it is still far cheaper to remain on the national grid despite the ‘Band A’ tariff.

    Mr. Adewale Fayemi of Total Energies, urged the Federal Government to initiate commercial framework that make provisions for recouping of investment in the renewable energy sector.

    Fayemi, who was represented by Total Energies Explorer General Manager, Mr. Omotayo Hassan, said the bane of investment in the renewable segment is lack of confidence on how to recoup investments.

    “We need to come up with strong commercial framework that gives investors confidence, that allows them recoup the capital they put into market, a reasonable amount of return. That is lacking today,” Fayemi said.

    He recalled that he was part of the team that had negotiated 14 solar projects for the country, all which appeared stalled for one reason or the other.

    “But the key reason they have not gone into financial close is because there is no commercial strategy for allowing risk. Those projects should have put 1gigawat of renewable power on the national grid. We need to look into this,” Fayemi said.

    He said the company has committed significant amount of resources, some $4 billion into renewables.

    “We are going to do 100GW renewables by 2030,” Fayemi said.

  • Our best yet to come, says Power minister

    Our best yet to come, says Power minister

    The Minister of Power, Chief Adebayo Adelabu has said despite the marginal improvement being experienced in the Power sector, Nigerians have not yet seen the best of the good the government has in stock.

    Describing the improvement in power availability to the people as just a scratch on the surface, he said by the time the government is done with ongoing reforms in the sector, Nigerians will be better for it.

    He spoke with reporterswhile giving update on the sector at the weekend.

    He said when the reforms are completed households industries and business will enjoy uninterrupted power supply.

    Adelabu said: “The update is the improvement that you have all noticed. The update is improvement but you have not seen anything.

    This improvement that we are witnessing now, we are just scratching the surface.

    “By the time when we are done with all our reform and transformation in the power sector, it would never remain the same again. Nigerians should be ready to enjoy 24/7 power supply.

    “Then we said the journey of a thousand mile, start with a single step in the right direction. We are taking the right steps and we are in the right direction and in no time we are going to have a power sector of our dream that the industries, the businesses the households will continue to enjoy uninterrupted power supply.

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    “But we need patience, we need trust, we need the confidence of the people to believe in those that have been appointed into power and we would not disappoint you, we’ll not disappoint the president, we’ll not disappoint Almighty Allah.”

    He also used the opportunity to appeal for support for the President Bola Tinubu-led government saying God has appointed him to lead the country to the new height.

    “We all know that God in His infinity mercy has appointed a leader for us in this country to take us to the promised land; to change the lives of Nigerians. What we need to do number one is to continue to pray for this administration, to pray for the captain of the administration President Bola Tinubu, for the Almighty Allah to protect his life, to give him good health, to be able to fulfill his promises for Nigerians.

    “He needs prayers. He needs all our prayers. When he is alive, when he has peace within himself, when he is healthy, he will be able to fulfill all his promises.

    “Then we need to work hard. He is a hardworking President. That is the example he has shown to all of us that are in his team and we are also following his footsteps. We are working hard to make sure that things change for the better in Nigeria.

    “To know that this hardship is temporary and it’s a sacrifice for us to have a permanent benefit of this administration, so that Nigeria can become Nigeria of our dream and he will take us to the eldorado.

    “And the last thing I want to say is sacrifice. We need to endure, we need to persevere, we need to believe, have trust and confidence in this government that whatever we are passing through today is for a better tomorrow and I am very confident as a member of the cabinet in this administration, I’m more than convince that the president has good plans for Nigerians and he will leave no stone unturned to ensure everything necessary in all sectors in Agriculture, works, power, Education, health, tourism, culture everything, he is really working hard to make sure that we are back to the committee of nations, that is our right position for us to take it back, Inshallah, and I’m very confident.”

  • Katsina enter power agreement with power Africa for state‘s electricity market

    Katsina enter power agreement with power Africa for state‘s electricity market

    The Katsina state government has entered into power agreement with Power Africa, Nigeria Power Sector Program (PA-NPSP), for the development of the state’s electricity market

    A press statement from the chief press secretary to the governor to newsmen, said the power agreement was signed after Governor Dikko Umaru Radda met with representatives from the Power Africa Nigeria Power Sector Program (PA-NPSP), including Andrew Smith, Deputy Chief of Party, and Lanre Lawson, Outcome Leader for Enabling Environment and Transmission in Abuja

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    The statement said: ’’This partnership aims to enhance electricity availability and access in Katsina by developing the necessary policy and regulatory frameworks for the state’s electricity market.

    ‘’The PA-NPSP, a signature program of the U.S. Agency for International Development (USAID), focuses on comprehensive power sector reforms, a supportive enabling environment, and increased private sector investment’’.

     ‘’The program seeks to add 10,000 MW of electricity generation capacity and create three million new electricity connections across Nigeria.”

    Governor Radda had earlier expressed gratitude to the PA-NPSP team for selecting Katsina as the first state in Northern Nigeria for such a collaboration.

    He further promised the state government’s commitment to achieving the stated objectives, which were crucial for increasing electricity access, stimulating industrial activities, creating jobs, and improving overall infrastructure and social amenities in Katsina.

  • Payment of $1.3b, N1.3tr power sector debts will attract investors, says AfDB

    Payment of $1.3b, N1.3tr power sector debts will attract investors, says AfDB

    • President okays action
    • Gas suppliers to be paid  N130b

    The presidential approval for the payment of $1.3billion and N1.3trillion power sector debts will attract investments, African Development Bank (AfDB) Vice President, Dr. Kelvin Kariuki, said yesterday.

    Minister of Power, Adebayo Adelabu, said the Federal Ministry of Finance had complied with President Bola Ahmed Tinubu’s approval to pay N130billion to gas suppliers from the gas stabilisation fund

    Gas suppliers are owed $1.3billion while generating companies are owed N1.3trillion.

    Kariuki believes investors will be hugely encouraged by the development.

    Also yesterday, Nigerian Electricity Regulatory Commission (NERC) Chairman Sanusi Garba, an engineer, noted that most of the distribution companies (DisCos) are technically insolvent.

    He said: “From the distribution sector, which is particularly the aspect that is affecting most of us as consumers, our understanding of the DisCos is that quite a number of them are technically insolvent.

    “They have corporate governance issues. Loss levels are high.”

    They officials spoke at the eighth African Energy Market Place with the theme: “Towards Nigeria ‘s Sustainable Energy Future: Policy, Regulation and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP).”

    Adelabu explained the payments were for legacy and current debts.

    He said: “For the current debt, approval has been given for cash payment of about N130billion from the gas stabilisation fund, which the Federal Ministry of Finance will pay, if not already paid.”

    Adelabu explained that the payment for the legacy debt will be made from future royalties and streams of income in the gas subsector.

    He believes settlement of the $1.3billion owed to gas suppliers will encourage firms to enter gas-supplying contracts with GenCos.

    The minister descried the absence of a firm contract between the gas companies and the majority of the GenCos.

    “The day they can supply gas, they will, the day they cannot supply gas, there is no penalty.

    “Once there is a firm contract, they will be under contractual obligations to supply gas to these power generating companies so that they can have a consistent power generation,” he said.

    The minister, who put the debt owed to the GenCos at N1.3trillion, said President Tinubu has approved the payment on the condition that there will be a reconciliation of what is owed.

    He revealed that while the majority of the companies have signed off, the government is engaging the remaining ones to achieve 100 per cent sign-off.

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    Adelabu said there would be an immediate cash injection while the government settles the other part with a guaranteed debt instrument, preferably via a promissory note.

    “This will go a long way to encourage the power-generating companies and incentivise them to even invest more in generation.

    “There is an opportunity for demand locally and across borders. And that will result in foreign exchange earnings for the country,” he said.

    Adelabu said the Band A electricity tariff that came into force on April 3 has reduced the cost of production by 40 per cent.

    But the minister did not explain.

    He added that with the generation of 700MW from the Zungeru hydroelectric power plant, the Nigerian Electricity Supply Industry (NESI) has recorded a new feat of 5,000MW in the last three years.

    Kariuki, AFDB Vice President in charge of the Power, Energy, Climate Change & Green Growth Complex, noted that Nigeria has a huge market for electricity demand.

    He said: “Settling debts to GenCos will have a very significant effect on investment.

    “The uncertainty and the risk of non-payment is what have been deterring some.

    “Nigeria has a huge electricity demand. This will spur greater confidence in the country.

    “You will get an influx of investors and people will find finance that is amenable for Nigeria.”

    House of Representative Speaker, Tajudeen Abbas, said the capital requirement for power sector development is too high.

    He called on the AfDB to inject more funding into the transmission sub-sector.

    The AfDB Vice President said projects are always based on their feasibility.

    “The bank is ready to fund the projects in line with what the country is entitled to on an annual basis,” he said.