NIGERIA GOVT. SECURE US$6BN FUND FOR POWER SECTOR

Nigeria Government has announced its has secure fund for the nation power sector.

The fund which is worth US$6 billion was made known by Minister of Power, Mr. Sale Mamman.

According to Mamman, the sector has been experiencing teething challenges, but added that under him, the national grid experienced a peak of 5, 420.30MW, the highest ever.

Quoting Mamman, “Infrastructure development is critical for the development of the power sector. The sector needs a reliable infrastructure to connect supply chains and efficiently move electricity from generation to households.

He also noted that due to lack of infrastructure, the sector is unable to efffectively utilise its generation capacity of over 12,000MW and incurred over N254 bilion as the cost of unutilised capacity.

Meanwhile, with the US$6.150 billion in funding, the present administration has commenced the implementation of critical infrastructure that will enable the country to achieve generation, transmission, and distribution of 25,000MW of electricity by 2025.

The breakdown of the funds showed that the Siemens deal would gulp US$2.3 billion while the Transmission Rehabilitation and Expansion Programme (TREP) will consume US$1.6 billion.

In addition, the federal government noted that a US$550 million facility had been secured for the Nigeria Electrification Project (NEP) from a World Bank and African Development Bank (AfDB) arrangement, including another US$1.7 billion to ensure that the power industry becomes more efficient.

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