FG Is Investing $2.3 Billion On The First Stage Of The Presidential Power Initiative

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State Minister for Power, Mr. Goddy Agba, says the Federal Government is preparing to spend $2.3 billion on the first phase of the Presidential Power Initiative (PPI) projects to increase the nation’s power transmission capacity to 7,000 MW.

During the Nigerian Energy Forum (NEF 2020) Webinar in Lagos, the minister disclosed this, called on Thursday “Energy Solution for Sustainable Recovery.” According to Agba, the different interventions are grouped in phases aimed at increasing the transmission capacity from the current level of just over 5,000MW to 7,000MW in the near term. “The PPI is divided into three separate phases to increase the power supplied to 7GW in the first phase, 11GW in the second phase and 25GW in the third phase.

“The project is to be carried out for $2.3 billion, which constitutes Phase 1 of the PPI and is financed by 85% of the contract loan from a consortium of German Banks, and 15% is sponsored by the federal government. “FGN Powerco is in the process of creating a special purpose vehicle ( SPV) following the approval of Mr. President. “The SPV will keep the contingent responsibility of the project. “We have also formed a project management office (PMO) in Nigeria, with the sole responsibility, on behalf of the government, to provide project management,” he said.

Agba said the government is also introducing the Transmission Enhancement Program with key stakeholders in growth to strengthen the sector.
“The World Bank, AfDB, JICA raised $1.6 billion for the Transmission Reconstruction and Expansion Program (TREP), which is now underway with major projects as follows: ‘Alaoji-Onitsha, Delta Power Station-Benin and Kaduna-Kano, $410 million, and $29 million, is intended to construct a Double Circuit 62KM line of 330kV between Birnin Kebbi and Kamba.

“The Lagos/Ogun Transmission Infrastructure Project (JICA) with 200 million dollars, Abuja Transmission Ring Scheme (AFD)-170 million dollars and Northern Corridor Transmission Project (AFD & EU) with 274million dollars,” he said.

The Minister praised the NEF team for its tirelessness and ambition in transforming the forum into a reliable medium for the exchange of information, expertise, ideas and solutions for the growth of the Nigerian supply industry (NESI). In addition, Dr John Momoh, Chief Executive Officer ( CEO) of the Nigerian Electricity Regulatory Commission (NERC), said that the new tariff would fix the problem of stakeholders in the power sector. Momoh said the regulatory body will control service providers to ensure the consumers receive quality services.

He said that with a presidential involvement in metering, meters will be issued to the numbered customers in a year or two. The National Chairman of the Nigerian Institute of Electronic Engineering (NIEEE), Mr Adeyemi Kings, stated that further development of infrastructure in the sector would be needed to meet the customer demand. Prof. Abiodun Otegbayo, Chief Executive Officer of University College Hospital, said that the slightest power disruption would impact on laboratory test results and can also influence healthcare treatments.

The CEO notes that our facilities, patients and operations deserve an uninterrupted power supply. He said that the medical care required significant investment and that it would benefit the industry by investing in power challenges. In his welcome address, NEF President Daniel Adeuyi told the conference and workshop, more than 300 participants took part. “Overall, how to rapidly recover from the COVID-19 outbreak is the great challenge. “Locally , nationally, and regionally, sustainable energy solutions may promote economic development. “The failure to access modern and cost-efficient energy services, however, can reverse progress,” he said.

Mr Adekunle Makinde, former NIEEE National Chairman and NEF 2020 Co-Chair, said earlier that efforts were being made to include four top-class workshops on the Nigeria Power Sector Program for Power Africa. “These include the women’s energy round table leaders, the All On Renewable Energy Recovery Effect and the Competition Finals for Africa Energy Concepts, headed by the NIEEE-NEF and All On Platform. “We encourage everyone involved to share expertise, create capacity and launch new businesses in order to accelerate recovery and sustainable energy growth in Nigeria,” he said.

 

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