FG Pays N1.2tn Power Debt, Plans 19,000MW Transmission Capacity

  • The Federal Government has paid N1.2 trillion of its N2.3 trillion power sector debt and plans to expand transmission capacity beyond 19,000MW.
  • It has also approved transmission upgrades, expanded solar projects in public institutions and begun clearing over 300 containers of stranded power equipment.

The Federal Government has paid N1.2 trillion of its N2.3 trillion debt to electricity operators. It is also targeting transmission capacity above 19,000 megawatts to improve electricity supply.

Joseph Tegbe, Minister of Power, said the payments form part of efforts to ease liquidity constraints affecting power generation and gas supply.

He said the government was also pursuing transmission upgrades and alternative energy projects to strengthen electricity delivery.

The ministry is conducting a nationwide technical audit of power infrastructure. The exercise will identify ageing facilities and prioritise urgent upgrades.

The government has also divided the country into three energy zones to guide interventions. According to Tegbe, Lagos and its environs account for about 50 per cent of national electricity demand.

Other zones cover Abuja, Kano and areas requiring improved transmission capacity and supply.

FG Plans Major Transmission Network Expansion

The government plans to increase transmission capacity from about 5,000MW to more than 19,000MW. This compares with installed generation capacity of over 13,000MW, Tegbe said.

The Federal Executive Council (FEC) has approved three projects to strengthen the transmission network.

They include an upgrade of the Katampe transmission substation, which serves the North-Central region.

Another project involves designing and manufacturing three 300-megavolt-ampere transformers for the Egbin transmission substation. The facility serves Lagos.

The third project will reconstruct a 35.6-kilometre transmission line along the Shagamu axis. The work will convert the line from a single circuit to a double circuit.

The projects are expected to improve grid capacity, stability and resilience.

Government Expands Solar Projects in Public Institutions

The government is also expanding solar power deployment to reduce public institutions’ dependence on the national grid.

Fourteen federal universities have received solar mini-grids with capacities ranging from 1MW to 5MW. Another 11 institutions have received funding through the Tertiary Education Trust Fund (TETFund).

Tegbe said the initiative covers nearly 30 institutions. He added that the University of Abuja’s solar mini-grid was inaugurated about three weeks ago.

Similar projects are planned for other universities.

In the health sector, the government has completed and energised solar mini-grids in five teaching hospitals. The Federal Ministry of Health is supporting the projects.

They are intended to provide more reliable electricity to critical public institutions.

FG Clears Stranded Power Equipment, Builds New Control Centre

The government has also begun clearing more than 300 containers of power equipment stranded at the ports. The move follows a directive by President Bola Tinubu.

Tegbe said the ministry was working with the Nigerian Ports Authority and Nigeria Customs Service. The agencies are facilitating the equipment’s clearance and deployment for electricity projects.

Meanwhile, construction has started on a new national control centre in Osogbo, Osun State.

The facility will replace the existing centre, which was built 64 years ago. According to Tegbe, the new centre will feature modern technology for grid monitoring and management.

The government plans to continue settling outstanding debts and upgrading transmission infrastructure. It will also expand alternative energy projects to improve electricity supply.

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