- The Nigerian government will invest $800 million under the Presidential Power Initiative to develop power sector upgrades.
- Minister Adebayo Adelabu aims to increase Nigeria’s power generation to 6,000MW by the end of 2024 and plans to construct super grids to support future sector goals.
The federal government has announced a substantial $800 million investment through the Presidential Power Initiative to enhance Nigeria’s power sector. This investment will focus on developing substations and distribution networks across the country.
On Sunday, August 1, 2024, Bolaji Tunji, Special Adviser for Media and Strategic Communication to the Minister of Power, revealed the initiative’s details in Abuja. During the China-Africa Cooperation Summit, the announcement followed a tour by Minister of Power Adebayo Adelabu of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
Adelabu outlined that the $800 million investment will be divided into two main segments, Lot 2 and Lot 3. Lot 2 will receive $400 million to upgrade the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas. In comparison, Lot 3 will also receive $400 million for the Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
Addressing concerns over power distribution, Adelabu highlighted the issue of DISCOs rejecting power, which has reduced generation capacity from a peak of 5,170 megawatts to 1,400 megawatts. Despite this setback, the administration is committed to increasing power generation to 6,000 megawatts by the end of the year.
Adelabu stressed the government’s commitment to collaborating with leading global organisations like TBEA to fulfil President Bola Tinubu’s vision for the power sector. He emphasised the need to modernise transmission and distribution infrastructure and enhance Nigeria’s renewable energy capacity.
Historically, Nigeria had a power generation of 2,000 megawatts in 1984, with an additional 2,000 megawatts added over the next 35 years. Under the current administration, power generation increased from 4,000 to 5,170 megawatts within one year, a significant improvement, according to Adelabu.
The goal is to achieve 6,000 megawatts by year-end, with plans to reach 30 gigawatts by 2030, including 30 per cent from renewable sources.
The minister also addressed the need for a super grid to support future power sector goals. He noted that the existing national grid cannot support the sector’s vision. The construction of the Western and Eastern super grids is expected to enhance transmission network capacity, stability, and flexibility.
TBEA President Huang Hanjie supported Nigeria’s power sector vision and assured continued collaboration. TBEA, which operates in over 100 countries, is already involved in Nigeria through its work with the Omotosho power plant in Ondo State. Hanjie praised the improvements in power generation and transmission and reiterated TBEA’s support for Nigeria’s ongoing power sector reforms.