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HomeTop NewsNigerian Govt. Spent 1.5 Trn Naira On Power Sector In Two Years

Nigerian Govt. Spent 1.5 Trn Naira On Power Sector In Two Years

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Nigeria has spent about 1.5 trillion naira in intervention fund to stabilise the power sector in the last two year, Vice President Yemi Osinbajo has said, leaving Nigerians wondering on the impact such investment has produced on the sector.

Powersector
Osinbanjo said this at a power sector roundtable hosted by Mainstream Energy Solutions Limited (MESL) at its Kainji Hydropower Plant in Niger State on Tuesday,

The Vice President who was represented by the Minister of Power, Sale Mamman, said “the Federal Executive Council (FEC) approved the third round of intervention funding for the sector, with a total of about N1.5 trillion in the last two years.

“However, if the country is to achieve its aim of channelling funding to other critical sectors, it is pertinent that structural reforms be put in place to enable the power sector fund itself sustainably,” Osinbajo said.
The Central Bank of Nigeria in May announced the disbursement of N120.2bn to different electricity distribution companies (DISCOs), power generating companies (GENCOs), service providers and gas companies, in order to address the liquidity and funding challenges facing the sector.
The World Bank announced early this month that it was in talks with the government for a $2.5 billion loan to resolve the problems of the country’s power sector.
The Bank in 2018 approved an estimated $486 million to improve and upgrade electricity transmission’s network of infrastructure and rehabilitate substations and lines in Nigeria.
According to the report, Osibanjo said the President Muhammadu Buhari administration’s goal to lift 100 million Nigerians out of poverty could only be achieved through ”improving the unresolved challenges in the power sector to drive industrialisation.
“I implore all key power sector players to resolve to think of the solutions to the challenges in the sector,” he said.
The chairman, Board of Directors of MESL, Sani Bello, however, implored the federal government to improve on its monthly payment for energy generation rather than the paltry 15 percent it is getting.
“As of May 2019, we only received 15 percent. I don’t think any GenCo can survive with that,” he noted and urged the government to provide a cost-reflective tariff.
Bello said MESL has made a remarkable improvement in its operation of both Kainji and Jebba hydropower plants since it took over the plants in 2013. with a production double its previous distribution of 300MW six years ago.

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