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Nigerian government to invest $800 million in distribution network
- 3 months ago (2024-09-02)
- David Flin
Bolaji Tunji, Special Adviser to the Nigerian Minister Of Power, said that the Nigerian federal government plans to invest $800 million in the construction of sub-stations and distribution networks as part of the Presidential Power Initiative (PPI).
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Adebayo Adelabu, the Minister of power, said that the investment would be divided into two lots: Lot 2, of $400 million, would cover Benin, Port Harcourt, and Enugu Distribution Companies franchise areas, and Lot 3, also of $400 million, would cover Abuja, Kaduna, Jos, and Kano distribution company franchise areas.
Adelabu expressed concern over the rejection of power by distribution companies due to their inability to manage the supply. He said that the government aimed to increase power generation to 6000 MW by the end of the year. He said: “When this administration came on board in 2023, we had about 4000 MW of power, but within a year, we were able to generate a milestone of 5170 MW. We aim to achieve 6000 MW by the end of 2024, and 30 GW to be generated, transmitted, and distributed by 2030, of which 30 per cent will be renewable energy.”
The minister said that part of the problems in the power sector, which had hindered industrial growth, was due to the fragility of the transmission and distribution infrastructure, which had become old and dilapidated.