Oil & Energy
FG Sources N33bn For Discos To Buy Meters …Earmarks N752bn For Transmission Projects
The Vice President,
Namadi Sambo, says Federal Government is currently sourcing for N33 billion to enable elasticity distribution Company (DISCOs) acquire smart meters.
Sambo, who disclosed this Thursday in Abuja while inaugurating the National Council on Power (NACOP), said for the power sector to grow in line with the Federal Government’s projection, it requires funds for the operators to bridge the metering gap.
The Minister of Power, Prof Chinedu Nebo, who represented him said efforts were also being made to leverage resources from various funding agencies to ensure that all participants in the sector have access to funds under soft term conditions.
He pledged Federal Government’s commitment towards ensuring adequate funding of the Transmission Company of Nigeria (TCN) to exceed generation capacity in terms of wheeling power, and disclosed that a total of $4.7 billion which was about N752 billion was already being set aside for the transmission expansion in the next five years.
The vice president reassured Nigerians that the government was committed to attracting investors to improve the country’s energy mix.
According to him, “It is for this reason that government is sourcing various funding avenues, including opening an” initial N33 billion soft term credit line to enable distribution companies acquire smart meters and making them more available to consumers.
On the energy mix, the Vice president said available studies had shown that Nigeria’s coal belt covers eight states and is capable of generating about 5,000 megwatts of power if fully developed.
Sambo stated that the Federal Ministry of Power and Ministry of Mines and Solid Minerals Development had been directed to ensure that the first large scale coal power project takes-off at the soonest time possible, following the model of partnership between government and the private sector.
The ceremony, according to him marked the official kick-off of the development of the national renewable energy action plan, and the energy sufficiency action plan in Nigeria.
Speaking in his own capacity as Power Minister, Nebo said NACOP comprise the Federal Ministry of Power as well as the commissioners of Power / Energy in the 36 states of the federation and Abuja.
Chris Oluoh
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