Why Nigerians Have Not Felt Impact Of N1trn Spent On Power Sector- Presidency

The Federal Government has explained why Nigerians have not felt the impact of the N1trn spent on the power sector under the administration of President Muhammadu Buhari.

Many Nigerians have in recent times questioned why the country is still experiencing epileptic power supply, despite the huge funding of the sector by the Federal Government six years after the privatisation programme.

THE WHISTLER had exclusively reported how the government failed to meet its target to deliver at least 10 Giga Watts of electricity by 2020, as spelt out in the Economic Recovery and Growth Plan.

Findings by this website had revealed that the Transmission Company of Nigeria only transmitted an all-time peak of 5.56 GW on January 7, 2021, which fell below the 10GW 2020 target.

Nigeria with about 12.5 GW of installed capacity had only distributed about 50 per cent of that capacity, resulting in shortage of electricity supply across the country.

The sector had in recent times contended with various challenges such as structural problems that continue to hamper growth in the power sector.

Some of these challenges are shortage of gas supply for thermal plants, high levels of unpaid electricity bills, power theft and vandalism, and the level of outdated and poorly maintained transmission network.

But speaking on the development during a radio interview programme monitored by THE WHISTLER, the Senior Special Assistant to the President on Public Affairs, Ajuri Ngelale, explained that the N1trn was not invested directly in power infrastructure.

Rather, Ngelale explained that the fund was invested in payment of subsidy for the sector to cushion the negative impact of increase in electricity tariff.

He said, “Some people have asked why the government has spent over a N1trnn on the power sector for several years without results.

“It is important for everyone to understand that N1trn was an equivalent of electricity power subsidy and not in infrastructure.”

To tackle some of the challenges in the sector, he said the President has approved the disbursement of N118bn for power distribution and transmission projects across the country.
According to him, the fund which would be disbursed by the Central Bank of Nigeria is aimed at providing 2,000 megawatts to power distribution projects across the six geopolitical zones.

He said, “Already, we have rolled out over 500,000 meters nationwide, and we are moving very aggressively towards the six million meters target by 12 to 15 months. This will make it possible for everyone who wants a meter to get one.

“Why this is critical is because once every Nigerian has a meter, the distribution companies will no longer be short-changed with the estimated metering going on.

“The President has said N118bn will be released for distribution and transmission projects that have been identified across the country.”

According to him, Buhari has asked the CBN to procure six million meters in support of the distribution companies operations, as well as ensure release of funds for speedy execution of the projects in the next 12 to 15 months.

“The next is once the N118bn is released for the next projects, across the six geopolitical zones, it is going to add 2,000 MegaWatts, to the transmission and distribution capacity of the country,” he added.

Ngelale, speaking further said the installation of the power equipment is expected to commence in June and July, adding that work has begun to route the distribution infrastructure across the country.