FG Seeks $4.7bn For Steady Electricity

The Federal Government needs an additional US$4.6 billion (N685bn) to invest into the power sector to ensure an uninterrupted electricity supply in the country, the Minister of Power, Dr Lanre Babalola has declared during the weekend.

This is coming after $5.06bn (N762bn) special intervention fund for the sector has been spent with only 2, 900mw realised seven weeks to the expiration of the government’s 6000mw target.

The new amount, according to the minister, is needed to be invested into the ailing sector to boost the generation, transmission and distribution of electricity in the next three years. He said that the projected investment excludes the existing investments by the three tiers of government.

The minister said that the investment, which is through the Niger Delta Power Holding Company in the three areas are N96.7bn for 2010, N536.54bn for 2011, and N53.5 bn for 2012. He said the money will go into areas such as plant rehabilitation and construction for the 6000mw, 10,000mw as well as the overhaul of the running plant to sustain power generation.

Babalola explained that the three years proposed expenditure are prepared by the Ministry of Power, Nigerian Electricity Regulatory Commission (NERC), and the National Power Training Institution (NAPTIN).

Also, the Independent Power Project (IPPs) in the country is in a serious dilemma due to the inability of the over 30 licensed companies for  electricity generation to come on board three years after they were licensed.

The Federal Government had, in a move to complement the epileptic power generation in the country, granted licences to about 30 independent power producers with capacity to generate 10,000mw in the last three years, but couldn’t produce anything three years after, despite several assurances.

The Administrator of the Nigerian Electricity Regulatory Commission, Imamuddeen Talba, revealed over the weekend that majority of the licensees are not capable of meeting their target.

Talba, who spoke at the Annual Ministerial Press Briefing by the Ministry of Power, said an assessment study was conducted by the commission and the outcome was very discouraging.

He said that of the 27 licencees, which are gas-driven plants, only one has so far signed a Gas Purchase Agreement to power its ongoing plant. “We have assessed them and we were able to identify that only few of them are serious. And the only outstanding one is the Geometrics Power Limited, which had already signed an MOU for the gas supply. We are expecting others to go ahead and do that, yet we haven’t got any of them in that respect. We cannot keep on waiting anymore.”

Talba said that the Federal Government, “in view of its desperation to get more electricity investors on board had granted licences to many applicants. As at today we have about 30 licensees; out of them about 27 are all licencees that applied to go into power generation, using gas.”

Some of the firms that were granted licences three years ago included Farm Electric Supply Limited Ota, Ogun State; ICS Power Limited, Alaoji, Abia State; Supertek Nigeria Limited, Akwete, Abia State; Ikorodu Industrial Power Limited, Ikorodu, Lagos State; Energy Company Nigeria Limited, Ikeja, Lagos State; Mabon Limited; Victoria Island, Lagos; Geometric Power Limited, Aba, Abia State; Aba Power Limited, Aba, Abia State; Westcom Technologies & Energy Services Limited, Sagamu, Ogun State; Anita Energy Limited, Agbara, Lagos State and Bresson Nigeria Limited, Magboro, Ogun State.

Others are First Independent Power Company Limited, Rivers State; Ibafo Power Station Limited, Ibafo, Ogun State; Hudson Power Limited, Victoria Island, Lagos; Shell Petroleum Dev. Co. Ltd, Rivers State; Ewekoro Power Ltd, Ewekoro, Ogun State; Ikorodu Industrial Power Ltd, Ikorodu, Lagos State; Agbara Shoreline Power Limited, Agbara, Ogun State; CET Power Projects Ltd, Garki, Abuja and Index Thermal Power Ltd, Abuja.

The Nigerian Agip Oil Company Limited; Nigerian Electricity Supply Corporation (Nigeria) Limited Bukuru, Plateau State; AES Nigeria Barge Limited, Apapa, Lagos; Energy Company of Nigeria (NEGRIS)

Ikorodu, Lagos State; Minaj Holdings Ltd, Enugu East LGA, Enugu State; Ibom Power Ltd, Ikot Abasi, Akwa Ibom State; Notore Power Ltd, Onne, Rivers State; Tower Power Utility Limited, Ota, Ogun State are among the licensees.

Special Adviser to Rivers State Governor on ICT, Engr Goodlife Nmekini (right) discussing with Permanent Secretary, Ministry of Information, Dr Godwin Mpi at the launch of the state Government E-Service Portal in Port Harcourt, recently.