PRESIDENT Goodluck Jonathan yesterday said the country would need to pump about $100 billion (about N15 trillion) into the power sector for it to achieve 40,000 megawatts (mw) in the year 2020.
The government had initially projected that it would need about $3.5 billion over the next 10 years to meet the same power generation target by the year 2020.
According to the President, government would need to invest $10 billion yearly to attain the power generation target, stressing that plans were in place to increase the capacity utilisation of the nation’s sub-stations by 50 per cent this year.
President Jonathan spoke at the Lagos Chamber of Commerce and Industry (LCCI) Business Environment Roundtable in Lagos. He was represented by the Special Adviser to the President on Power and Chairman, Presidential Taskforce on Power, Prof. Barth Nnaji.
Power generation in the country currently stands at a little below 4,000mw.
Meanwhile, the Action Congress of Nigeria (ACN) has opposed the Federal Government’s intention to build nuclear power plant for the purpose of generating electricity, saying that it has been proved by events around the world that nuclear energy is not a safe means of generating power.
The ACN presidential campaign train stopped in Benin City, Edo State capital yesterday where it also condemned the Federal Government’s decision to seek nuclear support from Iran “of all countries.”
Speaking to a mammoth crowd at the Samuel Ogbemudia Stadium, former National Chairman, Peoples Democratic Party (PDP) and now a national leader of the ACN, Audu Ogbe, said: “We will use coal, it is not harmful, we will use hydro plant, we will use solar energy to generate power.”
The President stressed that achieving the 40,000mw target was a national imperative that would be met through the Public-Private Partnership (PPP), with government providing the enabling environment for interested entrepreneurs to invest in the energy sector through its roadmap for the sector.
He said: “There is so much to do in the power sector. Though the country now generates some 3,840mw, the biggest quantum of electricity it has ever produced is a far cry from what the country needs. A minimum of 40,000mw is required so that we can realise the vision of becoming one of the 20 largest economies in the world by 2020. South Africa, a nation of 47 million people, produces over 40,000mw, yet this quantum has since 2008 proved inadequate. Our estimates of investment required in the value-chain of electricity production shows that about $100 billion will be needed within the next decade to increase electricity generation from the present less than 4,000mw to 40,000mw by 2020.
The President added: “The private sector has a big part to play in government’s determined effort to bridge the power supply shortage in Nigeria. The roadmap for the power sector reform makes the private sector the main driver of the generation and distribution sub-sectors but also the manager of the transmission network, even though it will remain government-owned. This shows how critical the private sector is to the success of the on-going power reform.
“My administration regards the private sector as a partner in national development. The concept of Public-Private Partnership, especially in infrastructure development, is fully in practice in the power sector.”
President Jonathan said government hoped to generate 13,000mw by 2013, stressing that concerted efforts would be made to increase the power generation capacity on a yearly basis.
He said the challenges identified by the government were in the areas of transmission and distribution networks, which have been neglected by past administrations.
The President lauded the commitment shown by stakeholders towards finding a lasting solution to the power crisis in the country.
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