The federal government, has concluded arrangements to invest N198.28 billion ($519.69 million) on various capital projects in the power sector in different parts of the country in 2021.
The projects are expected to further improve the country’s power generation capacity and distribution efficiency which has for a long time remained inefficient, greatly hampering efforts to increase energy access in Nigeria.
Due to inefficiencies, the country currently generates between 4,000 megawatts MW, and 5,000MW, although the country’s total installed power generation capacity is about 13,000MW.
“Out of the 13,000MW installed capacity, 8,000MW is available and ready to run but we are doing less than 5,000MW today,” Managing Director of the Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo, said.
To correct this situation, Different sectors in the power industry have been mapped out to partake in the $519 millon fund for capital projects in the 2021 budget proposal that was recently submitted to the National Assembly.
The Federal Ministry of Power will make the largest investment as it targets to invest $456 million on capital projects during the period.
The national rural electrification managed by the Rural Electrification Agency, will invest a total of $46.88 millon on power infrastructure development in rural communities.
In addition to this, the Nigerian Electricity Regulatory Commission (NERC) plans to invest N294.1million (about $774,000) on capital projects, while capital projects to be handled by the Nigerian Electricity Management Services Agency will gulp N441.1million (about $1.16 million).
Cumulatively the total allocation for capital projects to be handled by the Transmission Company of Nigeria, as contained in the budget, will amount to N4.69 billion (about $1.23 million).
Also, the capital outlay projected for 2021 by the Nigeria Electricity Liability Management Limited is N914.87m (about $2.40 million), while the National Power Training Institute targets to invest N294.1m (about $771,000).
The federal government over the years has been striving to grow the nation’s power generation and supply.
Ugbo, projected that the country’s power supply would as a result of the recent investments in the sector, increase from 5,000MW to 7,000MW next year.
