Against the backdrop of reforms and the introduction of Service-Based Tariff (SBT), power Distribution Companies (DisCo) have increased revenue by 63 percent.
According to Vice President Yemi Osinbajo, government subsidy in the sector will soon be limited as metering and other reforms improve the efficiency of the sector.
Osinbajo, who spoke at the 14th annual conference of the Nigerian Association of Energy Economics (NAEE), said with increased funding, the power sector would soon be fully financed by the market, rather than government subsidies.
“It is anticipated that all electricity market revenues will be obtained from the market with limited subsidies as reforms in metering and efficiency with the Discos continue to improve.
“There is an accelerated investment in transmission and distribution (over $3 billion) infrastructure that will put Nigeria on a path to 10GW+ and beyond through interventions with the CBN, the Siemens partnership, the World Bank, and African Development Bank and others,” the vice president said.
He said that efforts to invest $3 billion in revamping the distribution and transmission networks were ongoing in collaboration with the private sector,
The vice president, who was represented by Special Adviser to the President on Infrastructure, Ahmad Zakari, stated, “Electricity tariff reforms with the service-based tariff have increased collections from the electricity sector by 63 percent, increasing revenue assurance for gas producers and stabilising the value chain.
He said the current administration had continued to invest in expanding generation to cater to its current and future needs.
He disclosed that the Okpai PH II plant, the Afam III fast power plant, the Zungeru hydro plant, and the Mabilla hydro plant would add more than 1000 MW in both gas and renewable segments to the country’s generation capacity.
He said the present administration has transformed the Rural Electrification Agency (REA) into a renewable energy-driven organisation with solar power at its heart, with the five million solar connections programme, the Solar Power Naija.
This aims to supply power to 25 million citizens through private and public-private partnerships and is the largest off-grid connections programme in Africa.
He stated that the energy sector was one of the most critical sectors hit by COVID-19 due to the fact that it relies on human input.
According to him, the lockdown in major cities and restrictions in movement across the globe caused a halt in the operations of many energy organisations, leading to huge revenue losses for both the public and private sectors.
Nigeria and Germany Ink $500 Million Agreements for Renewable Energy and Gas Exports
Sun Africa Commits $2.2 Billion to Transform Nigeria’s Power Sector
Sun Africa LLC, a global entity dedicated to supporting Africa’s energy needs, has announced a commitment of approximately $2.2 billion for the development of Nigeria’s power sector.
The pledge follows a meeting between the Minister of Power, Adebayo Adelabu, and representatives from Sun Africa, led by Chairman Goran Rajsic.
In the initial phase, the project will concentrate on delivering 961 MWp of solar PV infrastructure and 455 MWh of battery energy storage, marking a transformative venture valued at $2.2 billion.
This strategic collaboration aims to address Nigeria’s growing demand for new power infrastructure, aligning with the nation’s economic needs and transitioning toward sustainability.
Adelabu emphasized Nigeria’s significant requirement for new power infrastructure to support economic growth and sustainability.
The commitment from Sun Africa and its partners signifies a crucial step toward achieving Nigeria’s electricity goals.
Goran Rajsic expressed gratitude to the project partners, highlighting the support in designing a comprehensive solution featuring cutting-edge solar PV and battery storage technologies.
Sun Africa’s collaboration with Sterling & Wilson Renewable Energy Limited as its EPC partner represents a milestone in advancing sustainable and reliable energy solutions for Nigeria.
This initiative aligns with the nation’s commitment to driving positive change through innovative renewable energy solutions.
Niger Delta Power Holding Company Reveals N190bn Debt Owed by Government Entities
The Niger Delta Power Holding Company (NDPHC) has disclosed that the Central Bank of Nigeria (CBN), the Nigerian Bulk Electricity Trading Plc (NBET), and the Nigerian Electricity Liability Management Company owe a cumulative sum of N190 billion for electricity supply.
Chiedu Ugbo, the Managing Director and CEO of NDPHC, shared this information during a media briefing in Lagos.
Ugbo highlighted that the N190 billion debt has accumulated from 2015 to May 2023. While the exact amount owed by NBET wasn’t specified, Ugbo emphasized that the huge indebtedness to NDPHC runs into hundreds of billions, affecting the company’s operations and financial obligations.
He stated, “NDPHC is also not paid for availability but only as dispatched, thereby depriving NDPHC of hundreds of billions since 2015 when the Transitional Electricity Market was declared, and the government has so far been denied revenue as high as N3trn.”
Ugbo emphasized the challenging situation the debt has created, making it difficult for NDPHC to meet operational expenditures, pay gas suppliers, and maintain regular power generation.
To overcome these challenges, he called for urgent private capital mobilization and explored independent transmission projects, involving Gencos as investors.
Executive Director, Generation, Engr. Abdullahi Kassim, highlighted the ‘Light-up Nigeria Initiative,’ a program aimed at leveraging NDPHC’s generation assets to provide reliable power supply to eligible customers, distribution companies, and third-party project developers, ultimately achieving over 97% power distribution to the masses.
FTX Trading Wins Approval to Sell Grayscale Stakes in Bid to Settle Debts
Bolt Expels Over 5,000 Drivers in Kenya to Enhance Safety Measures
Equinor Concludes Sale of Stake in Chevron’s Agbami Oil Field to Chappal Energies
Finance4 weeks ago
Black Market Exchange Rate Today 6th November 2023
Business2 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
Black Market Rate2 weeks ago
Black Market Exchange Rate Today 14th November 2023
News3 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
News3 weeks ago
N-Power Batch C1 Programme Successfully Concluded, Investigation Ensures Eligible Beneficiaries Receive Payments
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 9th November 2023
Forex2 weeks ago
Black Market Exchange Rate Today 16th November 2023
News4 weeks ago
Davido Faces N2.3 Billion Lawsuit Over Alleged Concert No-Show