Fidelity bank banner UBA banner
FG unfolds plan to diversify power supply, then focus on repairs

By Libby George, Karin Strohecker on 29/09/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 691

•Power transmission station
•Power transmission station

Nigeria is focused on diversifying power supply and ensuring its stability before pouring money into a creaking transmission system, a government minister told Reuters.

Minister of Information Lai Mohammed said that while Nigeria had already increased power generation to the point that its transmission system could not handle all of it, it was crucial to increase the mix of power sources and ensure reliability.

“We see the need to increase the mix,” Mohammed said, adding that out of the West African country’s 13 generating companies three were hydroelectric and the rest mainly gas.

“Our road map is really along the line of: first, measure power; then, stabilise power; and finally, repair,” he said.

Frequent power outages and unreliable supply are a brake on growth in Africa’s largest economy, although Mohammed said recent increases in power generation had helped to pull the country out of a recession caused by lower oil prices.

He said the government expected power generation to reach 7,000 megawatts (MW) this year, up from 2,690 MW in 2015.

Transmission capacity is 6,700 MW, up from roughly 5,000 MW in 2015, but still not enough to handle the power generated.

Mohammed said 1.2 trillion naira ($3.9 billion) of investments in infrastructure last year, 20 billion of which was focused on power, showed the government’s commitment to improving supplies for a country of around 186 million people.

However, output plunged to around 1,400 MW in May last year due to militant attacks that cut off gas supplies, highlighting the vulnerability of the system.

Mohammed said a $5.8 billion deal to build the 3,050 MW Mambilla hydroelectric plant, and purchase agreements with 14 solar companies for 1,300 MW of power, were part of the government’s diversification drive.

He added it was also working to address complaints from some gas and power suppliers about not getting paid.

“There was a liquidity problem in the gas area. The gas producers were not being paid,” he said. “We made this intervention, we call it the payment assurance agreement. If you supply gas, we will pay it. And if you supply power, we will pay it. It’s kind of a bridging arrangement.”

With regards to oil, Mohammed pointed to last year’s deal for the government to pay $5.1 billion of debt to oil companies, which also included a restructuring of the so-called “cash call” system to prevent future debt from accumulating. That could help the companies raise money to upgrade Nigeria’s ageing pipelines, which have held back oil production.

“With the new agreement, the oil company as an entity can access foreign funds,” he said, adding the deal would “make the industry attract more infrastructure development.” (Reuters)

Source News Express

Posted 29/09/2017 06:28:46 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Inflation hits eleven-year high as naira’s woes continue...

Troops nab militant kingpin in Calabar

Fuel queues resurface in Lagos, Ilorin, Benin City,...

Delta community gives oil firm 14-days ultimatum to...

Court grants Ex-FCT Minister Bala Mohammed N500m bail...

Military cracks down on BNYL members

Peter Obi didn’t make me Governor — Obiano...

Tailor kills brother with scissors

Rivers cancels Saturday’s (March 25) Monthly Sanitation Exercise...

Nigeria turns to UK experts for solution to...

4 killed in Nasarawa as APC, PDP supporters...

Governor moves against political godfather: I will soon...

 

Latest News How military favoured the North, cheated the South ― Ex-APC Chairman Bisi Akande Boko Haram kills 8 near Maiduguri Angry APC members block Kaduna-Abuja highway, protest alleged automatic tickets Why Nigerian workers ‘should be clapping’ for us ― FG Hamman Tukur, father of FG’s monetisation policy, is dead LASG votes N25bn for empowerment programmes Canada running out of marijuana two days after it became legal Wike raises alarm over alleged intimidation of judiciary Police bans use of tinted glasses, cover plate number No plan to dump APC, says Senator Abe •Insists still very much in the Rivers guber race FG reintegrates 254 ex-Boko Haram members, 3 foreigners Ebola: Over 150 people dead in Congo

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (408,023 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (383,110 views) Shameless Genevieve Nnaji exposes breasts in public (315,487 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (258,430 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,992 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,732 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,517 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,951 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,742 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (166,134 views) Lagos plane crash: Journalist releases victims’ names (161,797 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,541 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (69) Business & Economy (3,700) Business Verdict (52) Columnists (949) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (560) Features (660) Global Business Monitor (304) International (2,554) Interview (165) Live Commentary (28) Love Matters (145) News (39,783) Opinion (1,125) Pidgin (13) Politics (7,319) Religion (881) Sports (1,736) Stock Watch (35) AMA & Al Jazeera Global Update

 

NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner

 

 

 

NEWS EXPRESS TV

LIBYA vs NIGERIA 2-3 Goals Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement