Nigeria’s power minister, Adebayo Adelabu, says that the country’s power sector is poised for transformation as the government implements critical infrastructure programs to address the increasing electricity demands of its rapidly growing population.
During a ministerial briefing on Friday, May 24, Adelabu highlighted the Tinubu administration’s initiatives to upgrade the nation’s electricity sector.
Presidential Power Initiative
Minister Adelabu underscored the strides made under the Presidential Power Initiative (PPI), particularly following a key event in November 2023. At that time, President Bola Tinubu and German Chancellor Olaf Scholz oversaw signing an accelerated performance agreement designed to fast-track the PPI’s implementation.
“The pilot phase has led to substantial infrastructure improvements. We have increased grid evacuation capacity by 2,230MW, with an additional 183MW set to be commissioned by the end of June 2024,” Adelabu said.
Infrastructure Development
The government is also proceeding with Phase 1 of the PPI and finalizing contracts for brownfield and greenfield substations. “We are rehabilitating 15 existing substations, with contracts expected to be finalized by August 2024. Additionally, 22 new substations are under construction, with an anticipated contract date in October 2024,” he said.
Metering Initiatives
The government has launched a Presidential Metering Initiative (PMI) to address the longstanding issue of estimated billing and improve sector liquidity. This plan aims to supply two million meters annually over the next five years, targeting a metering gap that affects millions of Nigerian consumers.
In a related development, the Nigerian Army, grappling with significant electricity debt, sought presidential intervention. President Tinubu directed the Power Ministry to investigate and address the Army’s request, utilizing an N32 billion metering fund deposited with the private firm Ziklagsis in 2003 to supply three million prepaid meters.
Providing an update, Minister Adelabu announced that meters have been procured and are being deployed to military bases nationwide. This initiative is part of a broader effort to reduce the debts owed by government ministries, departments, and agencies (MDAs) to power distribution companies.
“Nearly 50,000 meters have already been installed in military formations nationwide to mitigate MDA debts and improve liquidity in the sector. We have just concluded a bidding process for an additional 1.5 million meters, funded by the World Bank, to enhance liquidity further and curtail estimated billing. The contract for these meters will be awarded in the coming months,” he stated further.
According to Adelabu, President Tinubu’s administration is firmly committed to closing the metering gap, which is crucial for eliminating estimated billing and preventing overbilling. The comprehensive metering plan aims to cover 10 million customers within five years, significantly improving transparency and efficiency in billing practices.
Population growth a basis for an efficient power sector
As Nigeria’s population grows, a reliable and efficient power sector becomes increasingly critical. The Tinubu administration’s concerted efforts through the Presidential Power Initiative and other infrastructural programs reflect a strong commitment to addressing these challenges. Nigeria is taking steps toward a more stable and sustainable electricity supply by expanding grid capacity, modernising infrastructure, and enhancing metering, which is vital for the nation’s socio-economic development.