N2.779trn needed to stabilise power sector –Minister

Chief Adebayo Adekola Adelabu

Chief Adebayo Adekola Adelabu

From Isaac Anumihe, Abuja

The Minister of Power, Mr Adebayo Adelabu, has said that the Transmission Company of Nigeria (TCN) will require an estimated N2.779 trillion to execute 149 critical projects aimed at stabilising the nation’s power supply and preventing grid collapses.

He made the disclosure during his appearance before the National Assembly in Abuja, where he highlighted the urgency of tackling Nigeria’s ongoing electricity challenges.

“For the TCN alone, we will need about N2.779 trillion to enable us to execute about 149 projects we are currently engaged in all over the country,” Adelabu stated. “Our total budget as a ministry is not even up to this, but as the saying goes, half a loaf is better than none. I’m telling you so that you can be aware of the kind of money needed in the ministry for us to address our electricity challenges. We need your cooperation and collaboration in achieving the mandate of Mr. President in electricity supply to Nigerians.”

Adelabu emphasised that the funds would be necessary to address the nation’s power infrastructure issues and ensure uninterrupted electricity delivery. The minister also shared exciting news about the progress of the Siemens power project under the Presidential Power Initiative, which has already reached 95% completion in its pilot phase for 2024. The second phase of the project, which will energize the power supply, is set to begin, and it will involve the construction of five substations across Nigeria. These substations are expected to significantly reduce the occurrence of grid collapses.

“The Federal Government is fully determined to address these challenges and issues that have been blocking our progress in our efforts to provide electricity to Nigerians and our consumers,” Adelabu affirmed. “Of particular note is the grid collapse, which has to do with the obsolete and outdated equipment around our power stations. To practically address this, the Siemens project will come on board in the first quarter of this year. We have almost concluded the take-off of the project, and it will involve building five substations across the country. This will energize our supply so that the issue of grid collapse will be a thing of the past. By next week, we will begin the contracts for the substations to come on board.”

The minister also raised a significant concern regarding the growing issue of vandalism of power assets, which he described as a serious obstacle to the sector’s development. He emphasized the need for joint advocacy efforts to curb the destruction of critical infrastructure, urging collaboration with security agencies such as the army, navy, police, and civil defense.

“One other critical thing I want to draw your attention to is the issue of vandalism concerning our assets,” he said. “It is important we sensitize our people against this act. We must be involved in serious advocacy on this issue. We must jointly address the issue of protecting the power assets. A damage to one is a damage to all, especially the transmission assets; they are so interwoven that a damage to one is a damage to all.”

Adelabu further elaborated on the grave consequences of such vandalism, citing specific instances of attacks on transmission lines, such as the Shiroro-Mando-Kaduna route, which were carried out in a manner reminiscent of war.

He noted that the resources used to repair such damages had not been budgeted for, underlining the financial and operational strain caused by these disruptions.

“We are not just dealing with those who steal cables but bandits, who use dynamite to blow up towers and transmission lines,” he explained. “There is no amount we can vote for this, either as a ministry or in TCN, that can solve this. Our transmission line from Shiroro-Mando-Kaduna, which was attacked by these bandits, and which we are yet to put back, was done in a manner as if we were in a war situation.” The Minister also disclosed plans to work closely with local contractors for the procurement of materials such as cables and poles, which he believes will conserve foreign exchange and help streamline procurement processes.

“I also want to let you know that we are encouraging our local contractors in providing our materials such as cables, poles, and so on,” he said. “This will help us to conserve our foreign exchange and reduce the transaction cycles we often face while we import. This will save us time in our procurement this year.”

The National Assembly members, who had been briefed on the ministry’s achievements and challenges, commended the Power Minister for the progress made in improving electricity supply, though they called for continued efforts to address the sector’s remaining challenges. Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, acknowledged improvements in supply, while stressing that much more needs to be done to take Nigeria’s power sector to the desired level. Senator Ashiru Oyetola of Osun State also expressed confidence in the minister’s ability to drive further reforms.

“The knowledge you displayed during your first appearance shows understanding of the industry, and this has been reflected in the performance of the ministry under you.

“I will, however, state that a lot still has to be done”, Oyetola stated.

In the House of Representatives, Victor Nwokolo, Chairman of the House Committee on Power, also expressed appreciation for the minister’s efforts but underscored the need for continued diligence and focus to resolve the nation’s energy challenges. Similarly, Afam Ogene, Chairman of the House Committee on Renewable Energy, and other members called for more frequent consultations with the National Assembly to ensure government interventions meet the sector’s needs.

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