- The federal government has paid N205 billion of the N1.3 trillion debt to Generation Companies, boosting liquidity and improving power supply.
- House Committee Chairman Victor Nwokolo demands stricter penalties for power asset vandalism and proper tariff increment procedures.
The federal government announced that it had offset N205 billion of the N1.3 trillion debt owed to Generation Companies (Gencos) to boost liquidity in Nigeria’s power sector. Minister of Power, Chief Adebayo Adelabu, made this statement during an oversight visit by the House of Representatives Committee on Power in Abuja. Adelabu emphasized that the recent improvements in electricity supply are attributed to the Bola Tinubu administration’s deliberate actions, not rainfall.
Adelabu urged lawmakers to continue pressing the executive branch to ensure full payment of outstanding debts to power sector players. He highlighted the importance of maintaining progress, noting that the recent enhancements in power supply should not be overshadowed by potential blackouts caused by ongoing economic difficulties, including fuel shortages.
The minister pointed out the dire state of Nigeria’s power infrastructure, including deteriorating towers, outdated transformers, and malfunctioning substations. He stressed the urgent need for infrastructure renewal and a revision of the current tariff policy. Adelabu also addressed the significant metering gap, revealing that only about five million electricity customers are metered out of over 12 million. The ministry aims to install two million meters annually over the next five years.
Regarding the Siemens power project, Adelabu reported that the pilot phase is nearing completion, with several pieces of equipment installed nationwide. He detailed the successful importation, commissioning, and installation of power transformers and mobile substations as part of the project. Adelabu dismissed suggestions that recent improvements in power supply were due to increased hydroelectric generation, noting that only about 20% of Nigeria’s electricity comes from hydro sources, with the majority generated from gas.
In his remarks, Hon. Victor Nwokolo, Chairman of the House Committee on Power, emphasised the need to maintain Nigeria’s recent achievement of 5,000 megawatts of electricity. He highlighted the potential economic and security impacts of power outages, including the risk of job losses and increased insecurity. Nwokolo proposed stricter penalties for power asset vandalism and criticised the recent tariff increases for lacking proper procedural compliance. He advocated for incorporating local vigilance groups into the security strategy for power infrastructure.
The committee plans to pursue legislative amendments to impose harsher penalties on vandals and address the destruction of power assets, aiming to protect vital infrastructure and ensure reliable electricity supply.