After Describing PHCN Privatization As ‘Political Favour,’ Buhari Plans N598bn Spending On Power

The Federal Government is planning to allocate the sum of N598bn for the execution of various strategies and initiatives to boost power supply to Nigerians within the next four years.

The planned spending is contained in the National Economic Development Plan of the Federal Government, which was launched last December by President Muhammadu Buhari.

A copy of the document, which was obtained by THE WHISTLER, showed that the measures are aimed at strengthening all aspects of the energy value chain including alternative energy sources and improve overall system reliability.

President Muhammadu Buhari had last Wednesday faulted the privatization of the power sector that was done under the administration of former President Goodluck Jonathan.

Buhari had while speaking during an interview with Channels Television, described the process as a “political favour” done to those closed to the administration at that time.

He said that those adjudged as winners of the privatization process in the power sector had no money to manage the Distribution Companies that emerged from the defunct Power Holding Company of Nigeria.

Although, electricity is considered a major determinant in the drive for industrialization, Buhari said supply to homes and businesses remained dismal in Nigeria on the backdrop of a flawed privatisation exercise.

But the government’s economic blueprint for the power sector stated that priority will also be given towards developing the abundant alternative energy sources such as wind, solar, biomass through a robust Public Private Partnership arrangement.

This, it stated, would help to increase energy use per capita and also ensure the use of environmentally sustainable energy sources.

It stated, “The government plans to allocate N598bn for executing the various strategies and initiatives planned for the energy sector between 2021 and 2025.

“These include measures to strengthen all aspects of the energy value chain including alternative energy sources and improve overall system reliability.

“Nigeria has the resources required to bridge its energy deficit whilst increasing affordability and accessibility. The government will undertake a concerted effort in the 2021-2025 window to leverage existing assets and resources to ensure energy sufficiency for all Nigerians.

“As the transmission network is further optimized and expanded, idle generating capacity will be progressively unlocked so that Nigerians can benefit from the full breadth of available generating assets.

“Priority will also be geared towards developing the abundant alternative energy sources such as wind, solar, biomass through a robust PPP arrangement to increase energy use per capita and also ensure the use of environmentally sustainable energy sources.

“This would improve Nigeria’s business environment and overall quality of life.”

Averaging 4,500 megawatts in the past eight years, Nigerians have been looking forward to improved electricity supply and may continue to wait as inherent challenges may stall power generation.

While Nigeria had introduced a Service Based Tariff late 2020 on the promise that electricity supply would improve, the prevailing situation created a worse experience for consumers.

The DisCos have failed to inject the required funds to boost their working capital and lift the needed infrastructure for the nation’s power distribution network.

The DisCos have also been accused of diverting their bill revenues to personal vaults instead of settling their debts and improving their working capital.

They are said to be holding on to decaying assets, while they feed fat on their helpless consumers through the notorious estimated billing system.