Nigeria to invest $800M in power sector upgrades

The Federal Government of Nigeria has announced plans to invest $800 million in the construction of substations and distribution networks in the power sector as part of the Presidential Power Initiative (PPI).

The investment in Nigeria power sector is aimed at enhancing the country’s power infrastructure and increasing electricity generation.

According to a statement released by Mr. Bolaji Tunji, Special Adviser on Media and Strategic Communication to the Minister of Power, the investment will be divided into two key segments.

The first $400 million will target the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, while the second $400 million will focus on the Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.

During a tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China, the Minister of Power, Mr. Adebayo Adelabu, expressed concerns over the current challenges facing the power sector.

He highlighted the issue of power rejection by Electricity Distribution Companies, which has recently led to a reduction in generation capacity from 5,170 megawatts to 3,770 megawatts. Despite this setback, Adelabu reaffirmed the government’s commitment to increasing power generation to 6,000 megawatts by the end of the year.

Adelabu emphasized the importance of collaborating with world-class organizations like TBEA to achieve President Bola Tinubu’s vision for the power sector. He noted that the current transmission and distribution infrastructure is outdated and unable to support the country’s growing power needs, contributing to the long-standing issues of unreliable electricity supply.

Reflecting on Nigeria’s power history, Adelabu pointed out that it took over 35 years for the country to double its generation capacity from 2,000 megawatts in 1984 to 4,000 megawatts. However, under the current administration, power generation has increased by 1,170 megawatts in just one year.

The minister also discussed plans for the construction of a super grid, which is essential for supporting the vision of the power sector. He noted that the national grid, in its current state, cannot sustain the desired growth, necessitating the development of both Western and Eastern super grids.

The project has received significant support from President Tinubu, with 90 percent of the necessary approvals already in place.

During the visit, TBEA President Huang Hanjie assured the Nigerian delegation of the company’s continued support for the country’s power sector. Hanjie praised the improvements in power generation and transmission under Adelabu’s leadership and expressed TBEA’s readiness to contribute to Nigeria’s ongoing power sector revolution.