Nigeria secured $6.15 bln multilateral facilities to boost power supply
Nigeria’s minister of power, Sale Mamman said the $6.15 billion facilities secured from multilateral agencies and other sources by the government would help transform electricity generations and distributions in the country within the next few years.
Mamman, who gave the breakdown of the credit facilities in a statement disclosed that the government secured $3.2 billion from Siemens, the German power company is currently carrying out the rehabilitation of the country’s electricity infrastructure.
The minister also disclosed that $1.6 billion was secured from donor agencies for the Transmission Rehabilitation and Expansion Programme (TREP), while $1.7 billion was secured from the World Bank, African Development Bank (AfDB), and the Japan International Cooperation Agency (JICA) to boost power supply.
He said, already $550 million from the facilities have been earmarked for the Nigerian Electricity Project (NEP), a rural electrification project being funded by the World Bank and AfDB.
Mamman said with the fund, the ministry has begun implementing critical infrastructure to transform generation, transmission, and distribution of 25,000 Mega Watts (MW) of electricity by 2025.
“The Siemens project will raise power to 7,000 MW in the first phase which just began, focusing on quick wins for both Transmission Company of Nigeria (TCN ) and the Electricity Distribution Companies (DisCos).
“The expected projects under the Siemens deal include 105 substations rehabilitation, 70 new substations, manufacturing and installation of 35 power transformers and installation of 3,765 distribution transformers.
“There will also be over 5,000 kilometres of transmission lines to be constructed,” the minister said in a statement.
According to Mamman, under his supervision, TCN is also implementing the $1.6 billion Rehabilitation and Expansion Programme (TREP) with funding from development partners like World Bank, AfDB, and JICA.
He listed the key projects impacted by the fund to include Alaoji-Onitsha and Kaduna-Kano power line among others.
Work is ongoing to complete the Zungeru Hydroelectric Power Plant worth $1.2 billion aimed at generating 700 MW while the project has attained about 73 percent completion presently.
“The 3,050 MW Mambilla hydropower project is expected to increase the national grid by 30 percent. It is worth $5.7 billion with 85 percent funding. With $4.85 billion from China while the Federal Government is providing $850 million funding.
“The main construction works include four large dams: Nya, Sumsum, Nghu, and API Weir in Taraba state.”
Mamman said that the government had also finished the 40 MW Kashimbilla hydropower plant in Taraba.
“We are currently working on the development and expansion of transmission lines to evacuate power from the project site to areas of distribution.
“There is also the 40MW Dadin Kowa hydropower plant in Gombe State while overhauling the 240 MW Afam Power Plant.”
The Federal Government is working to increase energy access for an estimated 80 million Nigerians that are without electricity access through the Rural Electrification Agency (REA),
He said that the ministry was also mapping out unserved clusters to provide a digital database of the distribution grid system.
“We have secured $550 million from the World Bank and AfDB for off-grid electrification being used to power universities and rural areas.
“With the mini-grid regulation, access to electricity is improving through REA. “As at 2019, we had four million off-grid connections.
“We aim to add another five million in the next 18 to 24 months under the recently approved Economic Sustainability Programme,” he said.
The minister noted that efforts were ongoing to close the gap between generation capacity and distribution as a means of reducing losses with individual capacity.
He said that the sector was already contending with a huge loss of more than N254 billion from unutilised power.
“Just on August 18, TCN achieved an unprecedented peak distribution of 5,420MW of power to the DisCos, being the third of such milestones.
“This is coming even as the ministry has attained a 24 hour transmission period as against the previous eight to 10 hours per day.” he said.