Minister of Power, Adebayo Adelabu, has said $10 billion is needed yearly for the next ten years to revive the nation’s power sector and nip in the bud the challenges bedeviling it.
The minister said this when he appeared before the Senate Committee on Power for investigative hearing over the recent electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC).
The minister said, “For this sector to be revived, government need to spend nothing less than 10 billion dollars annually in the next 10 years.
“This is because of the infrastructure requirement for the stability of the sector. But government can not afford that. And so we must make this sector attractive to investors and to lenders.
“So for us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.
“If the value is still at N66 and government is not paying subsidy,, the investors will not come. But now that we have increased tariff for a Band, there are interests being shown by investors.”
Adelabu said the inability of the government to pay outstanding N2.9 trillion subsidy was due to limited resources, hence the need to evolve measures to sustain the sector.
He appealed to the lawmakers’ to support the process of paying the debt owed operators across the value chain of generation, transmission and distribution.
He explained that as part of efforts to improve power supply, the government was investing in hydro electric power, adding that construction of 700 mega watt power in Zungeru had commenced, while Kashimbila Hydroelectric power plant of 40 mega watt was awaiting evacuation to improve generation.
The minister said there was also an on going investment of 26 small hydro power dams to boost electricity production across the country.
But the Senate Committee on Power, led by Senator Enyinnaya Abaribe, expressed concerns over the suffering of Nigerians, and flayed the minister and his team for not doing enough.
Senators Simon Lalong (Plateau South) and Adamu Aliero (Kebbi Central), said consultations were not made before the tariff increase, stressing palliative would have been provided in the process.
Abaribe, who is Chairman of the Committee, said, “What Nigerians wanted was a solution to the issues and ways to ensure liquidity in the sector.*
He also decried the non appearance of a company “ZIGLAKS” over the failed agreement to provide prepaid meters for Nigerians, alleging that the company had received N32 billion in 20 years to meter Nigerian electricity consumers.
Other stakeholders who made presentations at the investigative hearing were the Nigerian Electricity Regulatory Commission (NERC), Manufacturers Association of Nigeria (MAN), Association of Power Generation (Gencos), Electricity Distribution Companies (DisCos) among others.
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