The federal government says it has paid N205 billion from
the N1.3 trillion debt owed to generation companies (GenCos) to boost liquidity
in the power sector.
Adebayo Adelabu, minister of power, spoke during an
oversight visit by the house of representatives committee on power.
On February 15, Adelabu, arguing for the discontinuation of
electricity subsidy, said Nigeria’s debt to power generation and gas companies
was N3 trillion.
The minister, on May 16, announced that President Bola
Tinubu had approved the gradual payment of the debt owed to the companies.
During the visit, Adelabu said the federal government is
gradually repaying the liability.
“In terms of markets and liquidity, government is also owing
these companies, but they have started paying them little by little,” he said.
“Just about three weeks ago, out of the about N1.3 trillion
we are owing the generation companies (GenCos), we were able to pay them N205
billion.
“But I will plead
with the members of the house committee to help us mount pressure on the
executive to continue to pay these people.”
Adelabu said given the current economic hardship, including
petrol scarcity, Nigerians should not be subjected to another national
blackout, which would further diminish their quality of life.
He said Nigeria must renew its power sector infrastructure
and revamp the existing tariff policy, stressing that all segments of the power
sector need comprehensive improvements.
“A lot of the towers are falling. The substations are
dilapidated with very old transformers, some of them were installed in the 60s.
We have not been able to replace them,” he said.
“The same thing with
distribution infrastructure. The substations at the distribution level are also
not working properly,” he said.
Adelabu described the metering gap as significant, noting
that out of over 12 million electricity customers nationwide, only about five
million have been metered — leaving a gap of over seven million meters.
He said the ministry’s mandate is to install two million
meters annually for the next five years.
The minister said the power sector, which had been
considered stagnant for the past 15 years, is now making a strong comeback.
‘IMPROVEMENT IN ELECTRICITY SUPPLY NOT
ACCIDENTAL’
On the Siemens project, Adelabu said the pilot phase of the
scheme is nearing completion, stressing that various equipment from the project
are already being installed across the country.
He said the noticeable improvement in electricity supply
across parts of the country is a result of recent efforts by the federal
government.
“We went to Germany together and we had a meeting with the
German chancellor that we needed to accelerate implementation of the
presidential power initiative, which you all know as Siemens project,” the
minister said.
“The following month,
we had a meeting in Dubai and we signed an acceleration agreement to ensure
that we continued with this project and I can tell you, within one year, we
have almost concluded the pilot phase of this project.
“The pilot phase included importation, commissioning and
installation of 10 power transformers across Nigeria, 10 power mobile
substations across Nigeria. So, the improvement you see today is not
accidental.
“Hydroelectric power
in Nigeria today is just a bit over 20 percent of our total power generated.
The remaining almost 80 percent is from gas. So, it is not rain, but by the
intentional activities of the federal government through the ministry of power.
That is why we are seeing all those improvements.”
In his remarks, Victor Nwokolo, chairman of house of
representatives committee on power, urged the minister to ensure that Nigeria
does not fall below the 5,000 megawatts it recently achieved.
Nwokolo said without a stable electricity supply, many
companies could shut down, leading to job losses and increased insecurity.
The lawmaker suggested that stricter laws should be enacted
to combat the growing menace of power asset vandalism.
He said the lawmakers opposed the recent tariff increase for
selected customers because it did not follow due process.
“If you look at the electricity act, it said that increment
in tariff must be phased over a period of time,” Nwokolo said.
“Above all, it must be gazetted in different languages.
Meaning that there must be adverts, there must be consultations, there must be
town hall meetings here and there.”
Nwokolo said the federal lawmakers are exploring strategies to put an end to the destruction of power assets across the country.
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