The Federal Government of Nigeria plans to invest $800 million in the construction of sub-stations and distribution networks as part of the Presidential Power Initiative (PPI). The announcement was made by Mr. Bolaji Tunji, Special Adviser on Media and Strategic Communication to the Minister of Power, Mr. Adebayo Adelabu, during a recent tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China, where Adelabu was attending the China-Africa Cooperation Summit.
The investment will be divided into two lots: $400 million for Lot 2, which will cover Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas, and $400 million for Lot 3, which will cover Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
Adelabu expressed concerns over the rejection of power by DISCOs, which recently led to a reduction in generation capacity from a peak of 5,170 megawatts by 1,400 megawatts due to their inability to manage the supply. Despite this setback, the government aims to increase power generation to 6,000 megawatts by the end of the year.
The minister reaffirmed the government’s commitment to collaborating with world-class organizations like TBEA to realize President Bola Tinubu’s vision for the power sector, focusing on transmission, distribution, and renewable energy.
Adelabu noted that Nigeria generated 2,000 megawatts in 1984 and took over 35 years to add another 2,000 megawatts. Under the current administration, power generation increased from 4,000 megawatts to 5,170 megawatts within a year.
Addressing the issues in the power sector that have hindered industrial growth, Adelabu highlighted the fragility of the transmission and distribution infrastructure, which has become old and dilapidated. Over 59 percent of industries in Nigeria operate off the grid due to unreliable national grid power.
The current administration is determined to transform the power sector, with ongoing activities gradually restoring confidence in the sector. TBEA President Huang Hanjie assured continued support for Nigeria’s power sector vision and expressed willingness to collaborate with the Nigerian government, leveraging the company’s experience across 100 countries. TBEA is currently working with the Omotosho power plant in Ondo State, owned by the Niger Delta Power Holding Company (NDPHC).
