The Minister of Power, Adebayo Adelabu, has announced that the Federal Government is set to release $800 million for the construction of substations and distribution networks as part of the Presidential Power Initiative (PPI).
According to the minister, the investment will be allocated in two parts: $400 million for Lot 2, covering the franchise areas of the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs), and another $400 million for Lot 3, which covers the franchise areas of the Abuja, Kaduna, Jos, and Kano DISCOs.
The information was disclosed in a statement issued by Bolaji Tunji, Special Adviser to the Minister on Media and Strategic Communication. The statement was released on Sunday, quoting the minister during his visit to the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
Adelabu, who is currently attending the China-Africa Cooperation Summit, expressed concern over the recent rejection of power by DISCOs. This issue led to a reduction in generation capacity from a peak of 5,170 megawatts by 1,400 megawatts, due to the DISCOs’ inability to manage the supply. Despite this setback, the minister assured that the government is aiming to boost power generation to 6,000 megawatts by the end of the year.
During an interactive session with TBEA management, Adelabu emphasized Nigeria’s commitment to partnering with world-class organizations like TBEA to actualize President Bola Tinubu’s vision for the power sector.
The minister highlighted the need to address Nigeria’s outdated and fragile transmission and distribution infrastructure, which has historically hindered industrial growth. Over 59% of Nigerian industries currently rely on self-generated power due to the unreliability of the national grid.
Adelabu noted that, under the current administration of President Bola Tinubu, power generation has increased from 4,000 megawatts to 5,170 megawatts within a year. The administration is targeting 6,000 megawatts by the end of the year and 30 gigawatts by 2030.
Huang Hanjie, President of TBEA Company Limited, expressed the company’s support for Nigeria’s power sector goals and offered to share their extensive global experience in energy provision. He commended the recent improvements in power generation and transmission and confirmed TBEA’s interest in contributing expertise to the proposed super grid project.
