RIVERS: Buhari Commisions Afam 3 Fast Power Plant, Points Unstable Power Supply As Mega Challenge 

President Muhammadu Buhari has lamented on the epileptic power supply as a mega challenge facing the stakeholders in Nigeria. He thereby urge the stakeholders to leverage on the improved commercial environment that has been created to sustainably supply stable electricity and extend service to all our citizens.

During his visit to Rivers state Tuesday to commission the Afam 3 Fast Power Plant at Okoloma-Afam, Oyigbo Local Government Area by the Transcorp Power Consortium, Buhari, was represented by the Vice President, Prof Yemi Osibanjo, and spoke onbehalf of the President did reflect on the trajectory of improved regulations and enhanced injection of funds through privatisation.

The President however noted that if the trajectory of steady growth in the power value chain continues, the nation’s electricity supply industry would attain self-sufficiency by end of 2023, be able to resource itself and pay for itself.

He said, the commissioning of the Afam 3 Power Plant as part of the Afam Genco, “Brings very sharp relief to the importance of private capital in building up capacity along the power value chain. A major weakness of the privatisation process which started in 2005/2006 has been inadequacy of private investments and new cash injections.”

“Indigenous entrepreneurs such as Transcorp PowerPower making significant investments such this 100% acquisition of 966MW installed capacity Afam Power Plc and Afam 3 Fast Power Ltd, jointly referred to as the Afam Genco at an acquisition cost of about N105Bn.

“Only yesterday, the National Council on Privatisation (NCP) formally formally delisted Transcorp Power Plc (Formerly Ughelli Power Plc) from routine monitoring and evaluation by the Bureau for Public Enterprise (BPE), indicating yet another successful power investment.

“At same meeting of the NCP, the Council approved Transcorp Power Consortium as preferred Bidder of the Abuja Disco. But the complete story is that in the past few years, we have seen new money in the power value chain.

These transactions include Quest Plc that became core investor in the Yola Disco in 2020. The transaction is worth N19Bn. Last month, the NCP approved the 30-year concession of Zungeru Hydro Power at $70m per year, and over all the Nigeria electricity supply industry is getting better.”

Buhari further highlighted that as a government, his administration since 2020 through the Nigerian Electricity Regulatory Commission (NERC) has executed all its annual review processes without fail. This is the major difference from the past.

“In 2019, subsidies reached a peak of N584Bn in an environment that became so burdensome for the Nig govt fiscal position. The introduction of the service based tariff, payment discipline initiative for the sector jointly organized by NERC and CBN and the introduction of the National Mass Metering Programme (NMMP) has led to the doubling of the market correction in Nigeria’s electricity supply industry from N40Bn in 2012 to N80Bn per month in the first quarter of 2023.

“In 2022, five non-performing Disco were brought into restructuring programme that has led to a N10Bn per month reduction in shortfalls. If this trajectory continues, it means that the electricity supply industry will attain self-sufficiency by end of 2023, it will be able to resource itself and pay for itself.”

“The challenge before us is for the industry to leverage the improved commercial environment that has been created to sustainably supply electricity and extend service to all our citizens. Our administration has tried in this direction.

“We believe we are on track to provide electricity to all Nigerians in the next decade as we look forward to the next administration to scale up already existing programmes. Despite all these, we may not make progress if industrial and urban power supply that is anchored on large scale gas power plants such as the Afam 3 does not improve.”

For Tony Elumelu, Chairman at Transcorp, the realisation of the 240 Megawatts Afam Fast Power Plant comprising eight trailer-mounted gas turbines of 30 megawatts each opens another cheering chapter on the Transcorp success story.

He said, “We all know the importance of power in Nigeria, we all experience the consequences of power deficit, implications for our people, our businesses, our schools, our hospitals and our institutions. In fact implications for our national destiny.

“We (Transcorp) recognise power is the single most critical factor to lifting our people out of poverty and enabling job creation. It is a sector that has been a strategic priority for us since the inception of our journey at Hairs holdings. Why is it so, it is because to do well, is to do good.

“Power is a public good, a right, a catalyst for a better Nigeria. I am delighted to welcome you, Mr. Vice President to the commissioning of this project, it is a testament of your legacy as chairman of the National Council of Privatisation and reinforces our country’s confidence in the ability serious minded private sector leader to drive economic growth and progress.”

“I call on the Federal Government to please resolve the gas and power evacuation challenges that exist in this region so that the capacity we are covering in the plants is optimised for the good of Nigerians.

“I use this opportunity to urge the incoming administration also to improve gas supply to our industry and our Afam plants, ensure the completion of the 330 KVF tubor circuit Afam/Ikot Ekpene transmission lines which will increase the capacity of Afam corridor. And success has been built on the partnership with our host community.”