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From Isaac Anumihe, Abuja
The Federal Government has invested over $237 million in electricity sector infrastructure relating directly to transmission lines.
In his presentation at the 6th edition of the Power Correspondents Association of Nigeria (PCAN) workshop at the weekend, the Managing Director and Chief Executive Officer (MD/CEO) of FGN Power Company Limited, Kenny Anuwe, said the expected overall electricity target by 2029 was 5,540 megawatts. That, he said, would improve reliability by at least 60 per cent of what the nation was currently experiencing on the grid.
“That is significant. That is something that we absolutely can look forward to in Nigeria. In terms of the economic impact, you can see that we’ve outlined it.
“But we know that at least 2,000 industries can come back on grid. And this data is based on the number of industries that are presently on grid.
“And we know that from our data, these are the customers that will be impacted. This is the number of households that will be impacted,” he said.
According to Anuwe, what is more exciting is not the present outcome but what is achievable in the coming months.
“What excites me is not so much what we have achieved and what is already under way but what also I believe we will be able to deliver in a matter of years now.
“So, I believe we’re moving from constraints to breakthroughs. Possibly, most people in this room can tell us what they think the problems of the power sector are.
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“What are the solutions? Do you have them handy? Do you know exactly what you think? Apart from saying very offhandedly that we need to do investments in infrastructure, what are the specific things that we need to do? I believe that Nigeria can build and will build a trillion dollar economy by leveraging bankable and scalable investment models for its electricity power investments.
“We need infrastructure delivery architecture that’s treated as an economic resource,” he noted.
Specifically, Anuwe stated that FGN Power Company was targeting a $2.3 billion project. While $1.3 billion was coming from Europe, $1 billion was coming from China.
Other financiers need to bring in $18 billion.
“We’re not saying that the money comes to FGN Power Company Limited, but we’re saying it comes into the sector in such a way, such investment models will allow us to scale and to move quickly. That’s the only way that we’re going to be able to match the vision of achieving a $1 trillion economy. In terms of how we’re going to go about it, currently we’re using the guarantee model where the federal government provides a sovereign backing and provides 15 per cent counterpart funds,” he explained.
Earlier, the Chairman of PCAN, Obas Esiedesa, had lamented the serious decline in electricity generation in the last eight months, saying that reduced water inflows into hydroelectric power stations had compounded the issue.
“One critical issue that deserves urgent attention is the recurring seasonal decline in electricity generation, particularly between November and March. During this period, reduced water inflows into hydroelectric power stations often affect generation, while gas supply constraints to thermal power plants further compound the problem.
“This recurring challenge has continued to undermine efforts to achieve stable electricity supply. It is therefore important for the government, regulators, electricity generation companies and gas suppliers to strengthen collaboration and develop sustainable arrangements that will guarantee adequate gas feedstock for thermal power plants, especially during periods of reduced hydro-power generation.
“We must also address the larger issues of inadequate transmission and distribution infrastructure, liquidity challenges, investment gaps, regulatory uncertainties and the need for improved efficiency across the electricity value chain,” he noted.
