To address the poor power supply situation in the country,the Federal Government will spend about 881bn naira over the next three years.The huge capital outlay will cover areas such as generation,transmission and distribution as well as exploitation of new energy resources.
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http://odili.net/news/source/2011/jul/25/814.html

To address the poor power supply situation in the country, the Federal Government will spend about N881bn over the next three years. The huge capital outlay will cover areas such as generation, transmission and distribution, as well as exploitation of renewable energy sources, EMEKA EZEKIEL reports.



Minister of Power, Prof. Barth Nnaji



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The Federal Government is planning to spend N880.97bn on the power sector from now till 2013 as part of renewed efforts to guarantee adequate electricity supply to domestic and industrial users.

This is contained in a document on the Federal Government's proposed investment in the power sector, a copy of which was obtained by our correspondent from the National Planning Commission in Abuja on Friday.

According to the report, the money is expected to be spent on power generation, transmission and distribution from regular sources and alternative energy sources.

A breakdown of the proposed expenditure indicates that N37.601bn will be spent on the overhaul and rehabilitation of seven existing power generation plants across the country; N314.180bn on the rehabilitation and expansion of transmission, distribution and infrastructure networks; N53.565bn on the construction of additional gas supply infrastructure and N27.688bn on the construction of coal-fired power plants in Enugu, Benue and Gombe states.

Similarly, N15.040bn will be spent on the construction of 215 megawatts Low Pour Fuel Oil powered generation plant in Kaduna; N786.22m on the construction of the 10MW Katsina Wind Project; N2.290bn on the Mambila Hydroelectric Power Project; while N51.275bn will be spent on the construction of the 700MW Zungeru Hydro Power Project.

Other projects that the government intends to invest substantial amount of money on in the next three years are the solar rural electrification projects in four communities in Cross River, Ogun, Bauchi and Katsina states (N16.681bn); the construction of a 230MW dual power plant using crude oil and gas in Badagry (N5.230bn); small and medium hydro power plants in various locations (N4.102bn); non-priority projects (N162.752bn) and unspecified projects (N189.783bn).

The document states, "The total proposed investment in the sector between 2011 and 2013 is N880.97bn. This will cover investment in four major areas comprising power generation, transmission, distribution and alternative energy. Power is a critical infrastructure for sustainable economic growth and development. This is because most economic activities are dependent on affordable and adequate energy for effective operation.

"It is critical for reducing the cost of doing business, enhancing productivity and quality of life. The inadequate provision of power has a pervasive impact on socio-economic activities and consequently on the living standards of citizens in Nigeria."

According to the country's Vision 2020 economic blueprint, Nigeria is expected to generate, transmit and distribute 35,000MW of electricity by the year 2020.

The strategic objective for the power sector, according to the blueprint, is to ensure that it is able to efficiently deliver adequate, qualitative, reliable and affordable power in a deregulated market, while optimising the on and off-grid energy mix.

In spite of the abundant energy resources and huge government investments in the sector over the last 10 years, electricity supply has remained a serious challenge to Nigeria's socio-economic development.

Statistics from the NPC show that only about 40 per cent of Nigeria's population has access to electricity supply owing to inadequate transmission and distribution networks.

Nigeria currently lags behind in terms of access, quality and availability of public electricity supply.

Most of the nation's infrastructure in the power sector were built in the 1970s and 1980s, but due to lack of maintenance and expansion of facilities, the country has suffered significantly from epileptic and limited availability of electricity supply.

Ageing infrastructure, weak and radial network configuration and over-loaded transformers also result in frequent system collapse, high transmission and distribution losses and poor voltage profile.

However, the report states that the government is determined to revamp the sector by investing massively in critical areas that will accelerate the provision of uninterrupted power supply for industrial development.

It states, "The nation's transmission network is currently overloaded with a wheeling capacity of less than 4,000MW. It has a poor voltage profile, inadequate dispatch and control infrastructure, radial and fragile grid network, frequent system collapse and exceedingly high transmission losses, which is as high as 25 per cent compared with the three per cent in the United States of America, 0.5 per cent in Japan and 0.4 per cent in South Korea, due to low transmission grid voltages.

"Access to electricity supply is low with about 40 per cent of the national population - representing less than 60 million people -not having access to electricity. However, the Federal Government's broad vision for the power sector is to meet the demand for adequate and sustainable power in all the sectors of the Nigerian economy and in all parts of the country at affordable costs."

It adds, "The government will invest in direct electricity generation as well as providing an appropriate legal and regulatory environment for private sector participation. The overall target is to generate, transmit and distribute 16,000MW by 2013. Alternative energy technology will also be developed from coal and other renewable energy sources such as wind and biomass.

"However, government will continue regular maintenance of all power infrastructure, rehabilitate and complete all ongoing power projects, while putting in place incentives for private sector participation through the accelerated implementation of the Power Reform Act."

Sounds more like Federal Govt set to embezzle another N881bn in 3yrs

but don't forget that each 1000 m.w cost almost a billion dollar

Bart Nnaji!

Where are the pre-election apologist of GEJ who insisted his "privatization" plan for the power sector was the "best" and a direct reason why they would vote for him? Papabrowne where are you ? Are you hiding under a rock somewhere? What happened? How come the "privatization President" is actually running away from privatizing anything? How come all we are getting is a continuation of the practices that has gotten us where we are today?

It seems "the boy with no shoes" , with the help of his AGIP pals, has successfully 419ned gullible Nigerians who continue to show the world that they are extremely poor students of history. What is written above , in the article, does not sound like a "comprehensive privatization plan". It read like "more of the same" i.e a repeat of past practices that sees loads of money spent by the FG with no commensurate increase in power supply. Nigerians should just shout "fresh air" during power outages.

Another money is about to miss road.

Blackteeth:

Another money is about to miss road.

Gba beski . Another set of "owners of Nigeria" will also become billionaires. It is their turn to 'eat' copiously from the national cake .

So I take it that privatization has fallen apart even before it really started.
Wow.

MShittu:

[b]So I take it that privatization has fallen apart even before it really started.[/b]Wow.

Blame this on Nigerians and their eternal optimism where there should only be pragmatism and caution. Some of us shouted , before the elections, that only a miracle will see Jonathan implement some of the glib and patently insincere talk emanating from his mouth given that what he claims he will do goes directly against the interest of his staunchest backers who also happen to be the same AGIPs (any government in power) and ruinous hands who have gotten us into the mess we are in .

Yet Nigerians still harboured some misplaced hope that GEJ can deliver even as there is absolutely nothing in his political history to suggest this. Abeg, Nigerians should enjoy their "fresh air" diluted with preventable suffering while they watch new billionaires created and old ones , like Anenih et al, get substantially richer.  Even now , with so many issues pending (eg PIB, security, power etc ), all Jonathan is concerned about , in testimony to his opportunistic nature, is sending a bill for executive tenure elongation to the NASS. "Transformation Government" is simply the new name for "business as usual" and "more of the same"as some of us predicted would be the case.

Maga don pay shout halleluyah o o o o, mugun don pay shout halleluyah e e e, haleluya, haleluyah haleluyah, odechukwu don sonwo omogo e e e.

It adds, "The government will invest in direct electricity generation as well as providing an appropriate legal and regulatory environment for private sector participation. The overall target is to generate, transmit and distribute 16,000MW by 2013. Alternative energy technology will also be developed from coal and other renewable energy sources such as wind and biomass.

If that number of MW is possible, it would be great achievement.

Opening up the industry is very important.