Electricity generation now at 4,242MW, highest ever – Nnaji
By Martin Ayankola

The Federal Government said on Monday that the country had attained an all-time-high power generation of 4,242.7 megawatts.

The Minister of Power, Prof. Barth Nnaji, announced this in Abuja even as his counterpart in the investment and trade ministry, Mr. Olusegun Aganga, also said the Federal Government had sealed a N240bn energy and housing deal with European investors.

Nnaji, who spoke at a stakeholders’ workshop on “Towards Stability in Power Sector”, held at State House Banquet Hall, Abuja, said the country had also reduced the incidence of system collapse in the power sector significantly.

The power minister said, “On Friday, September 17, 2011, Nigeria attained the highest quantum of power ever. We achieved 3,982.7MW. This figure does not include the 260MW maintained as spinning reserve, which is used for system stability. I am glad to report that all the 3,982.7MW now produced in Nigeria goes into the national grid without difficulty. In other words, the attained generation is now 4,242.7MW.

“Nigeria used to experience an average of four system collapse every month, that is, almost 50 system failures annually. Much as we have reduced the failures in the last one year, our goal is to reduce them to zero. I must add, however, that some of the failures are caused by factors beyond our control, like a sudden shortage of gas supply to a power generation facility.”

The former President Umaru Yar’Adua administration had failed to deliver on its promise of attaining a 6,000MW target in 2009. The highest the government achieved in August 2010 was 3,800 MW, the highest figure till then.

Nnaji said there were credible reports of a noticeable improvement in power supply in many parts of the country and that the country was expecting an additional 10MW from the Delta Power Station in Ughelli, Delta State, this month. He added that another 120MW will be added later this year, bringing the quantum of power being expected from the plant to 470MW.

“This improvement will still leave us with a shortfall of 430MW because the station’s installed capacity is 900MW. From its sister power station in Sapele, we are expecting an additional 100MW this year, raising supply from this station to 252MW. Still, there will be a shortfall of 768MW because the installed capacity of the station is 1,020MW.

“We have a programme to recover as soon as possible lost capacities at Egbin, Kainji and other places. The 760MW Kainji hydro station, built in 1968, has never been overhauled. But some of its units which are out of use are now undergoing rehabilitation. Coupled with the scheduled inauguration of some plants being built under the National Integrated Power Project, we are optimistic of achieving the target of 5,000MW this year and hit 6,000MW in 2012,” he said.

Also, the Federal Government has signed a Memorandum of Understanding with a consortium of Swiss and European investors for the investment of N240bn ($1.6bn) in the power, petroleum and housing sectors of the Nigerian economy.

Aganga confirmed the development during the signing of the first phase of the MoU with the representatives of the consortium in Abuja.

The group, comprising Seagas Services Limited and Oceanmar Services Limited, was led by the First Deputy Prime Minister and Head of International Affairs and Investments, Republic of Kosovo, Mr. Behgjet Pacolli.

Aganga said that the Ministry of Trade and Investment would work closely with the Ministries of Power and Petroleum to facilitate the investments, adding that the Federal Government was committed to supporting genuine investors to invest in critical sectors of the Nigerian economy.

He said, “We have held discussions with the representatives of Seagas Services Limited and Oceanmar Services Limited, about the investment opportunities in Nigeria. We have agreed on investments in a few areas such as housing, building a factory for gas infrastructure for the manufacturing of gas pipelines.

“We also discussed the possibility of investing in the area of power, building of refineries and housing construction.

“After a number of discussions, we are signing a Memorandum of Understanding for the estimated sum of $1.6bn to be invested in some of these areas. Specifically, the money will be invested in refinery, power and housing,” he said.

President Goodluck Jonathan, who was represented by Vice President Namadi Sambo, blamed the unstable power supply experienced in the country on poor pricing. According to him, Nigeria has the lowest electricity tariff and that is why it has poor power supply. Jonathan also said that a new monthly bill of N11bn had been approved for Power Holding of Nigeria’s workers by the government.

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