The federal government announced yesterday that it has allocated N205 billion from the N1.3 trillion debt owed to Generation Companies (Gencos) in an effort to enhance liquidity within the power sector.
The government highlighted that the significant enhancement in electricity availability in certain regions of the country was not coincidental, but rather a result of the proactive measures undertaken by the Bola Tinubu administration.
While addressing the audience in Abuja during an oversight visit from the House of Representatives Committee on Power, Minister of Power, Chief Adebayo Adelabu, emphasized the importance of lawmakers maintaining their pressure on the executive branch to ensure that outstanding debts owed to stakeholders in the sector are settled.
He said, “In terms of markets and liquidity, government is also owing these companies, but they have started paying them little by little. 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. And they are also happy.
“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 pointed out that the discrepancy in metering is significant, noting that among more than 12 million electricity customers across the country, only slightly more than five million have been metered. This results in a shortfall of over seven million meters.
He stated that the ministry’s goal is to install two million meters each year for the next five years. He expressed optimism that a sector that has been considered troubled for the past 15 years is now showing signs of recovery.
Regarding the Siemens project, Adelabu mentioned that the pilot phase is nearing completion, highlighting that numerous pieces of equipment from the project are currently being deployed across the country.
“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.
“And 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. It’s not due to rainfall.
“Hydroelectric power in Nigeria today is just a bit over 20 per cent of our total power generated. The remaining almost 80 per cent is from gas. So it’s not rain, but by the intentional activities of the federal government through the ministry of power. That’s why we are seeing all those improvements,” he said.