Power sector funding rises by N900b in 3 months
By Jeph Ajobaju, Chief Copy Editor
Federal funding for electricity transmission and distribution companies rose from N2 trillion in May to N2.9 trillion in August, a 45 per cent increase with little to show for stable power supply across the land.
N2.9 trillion is the estimated total funding for all the power sector value chain since privatisation in 2013.
Bureau of Public Enterprise (BPE) Director General Alex Okoh confirmed a new 2.3 billion Euro loan has been approved for transmission and distribution.
Prior to the new approval, the last one in May was a $500 million loan given by the World Bank to improve electricity distribution.
“There are a lot of interventions going in that regard. There is 2.3 billion Euros for the transmission and distribution so that we can wheel more power for consumers,” Okoh told The PUNCH.
Abuja unbundled the Power Holding Company of Nigeria (PHCN) in 2013 and sold 18 utility firms to private investors.
It claimed to have spent N1.7 trillion on the sector between 2017 and 2020 plus $500 million World Bank loan and the fresh 2.3 billion Euro, bringing its total funding to N2.9 trillion.
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Renewable energy as solution
Asteven Group Director and Renewable Energy Association (REAN) member Segun Adaju insisted the solution to unstable power supply is for the government to embrace renewable energy such as solar now in a boom.
“Yes, there is a boom in the solar market because the grid is always collapsing and everyone needs power.
“We now have more people coming to ask for the cost of installing solar panels. And you know there’s also an increase in the price of diesel,” he said, per The PUNCH.
Despite huge government funding, the power sector is hamstrung by a plethora of hitches such inadequate generation and grid collapse, with six recorded by July.
