Minister of Power, Chief Adebayo Adelabu, said the Federal Government had concluded plan to release $800 million for the construction of substations and distribution lines under the Presidential Power Initiative (PPI).
He stated that the money would ensure the construction of substations for Lot 2, substations and distribution lines forn Lot 3 at a cost of $400 million each.
He explained that Lot 2 covered Benin, Port Harcourt, Enugu distribution companies (DISCOs) franchise areas while Lot 3 covers Abuja, Kaduna, Jos and Kano DISCOs franchise areas.
Adelabu said these during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China, according to a statement yesterday by his media aide: Bolaji Tunji.
The statement explained that the Minister was in China to attend the China-Africa Cooperation Summit. The Minister said on Friday, August 30, that generation peaked at 5,170 megawatts, but unfortunately, it had to be ramped down by 1,400 megawatts due to inability of the DisCos to pick the supply.
He said: “This is really regrettable considering that government is on course to increase generation to 6,000 megawatts by the end of the year.”
Also speaking during an interactive session with TBEA management, Adelabu also assured of Federal Government’s commitment towards working with world class organisations like TBEA to achieve the Renewed Hope vision of President Bola Tinubu for the power sector in Nigeria, especially in areas of transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment.
Speaking on the problems in the power sector, which has hindered industrial growth, the Minister said this was partly due to the fragility of the transmission and distribution infrastructure, which have become old and dilapidated.
“This has led to historical epileptic supply of Power to households, industry and businesses,” he said. According to him, more than 59 per cent of industries in Nigeria are off the grid. “They did not see the national grid as reliable and dependable.
So a lot of them now operate their own captive, self-generated power,” he said. Adelabu said the administration of President Tinubu was determined to transform the power sector, adding that a lot of activities had started that is gradually bringing back confidence in the sector and among consumers, especially the industries.