The Minister of Power, Adebayo Adelabu, has stated that the federal government will continue to provide subsidised electricity to vulnerable groups in the society while making sure of a cost reflective tariff in the electricity supply industry.
In a statement yesterday, the minister said lack of liquidity continues to be a significant challenge in the electricity market.
Adelabu noted that understanding the critical role of electricity in economic growth made the initial three months on his assumption of office to focus on diagnosis, stakeholder consultation and strategy formulation, adding that with a well-documented implementation plan, the time is now to take decisive action.
According to him, the ministry, agencies and DisCos worked tirelessly during the yuletide to enhance power supply while also acknowledging positive improvements.
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“Our primary focus is enhancing distribution and transmission infrastructure to minimize technical and commercial losses. We are currently reviewing the implementation process of a cost reflective tariff, while the government will continue to subsidize power supply to those that are vulnerable in our society.
“Closing the meter gap is imperative, and ongoing initiatives, including World Bank programmes and the Presidential Metering Initiatives, will gain momentum. The ministry will intervene in distribution infrastructure, supplying transformers to communities without burdening citizens financially,” he said.
Adelabu said further that rural electrification would remain a priority, with plans for solar-powered mini/micro grids and street lights while collaborating closely with DISCOs and State Electricity Boards.
He said in order to improve the transmission infrastructure, “we have reactivated the Presidential Power Initiative (Siemens Project) which will strengthen the national grid, and minimize technical losses. We will also be implementing the Eastern and Western super grid projects to strengthen the grid and increase electricity supply to demand canters in the country.
“The Transmission Company of Nigeria will be reconstituted in the short term, separating Transmission services from System and Market operations in the first quarter of this year. In the medium to long-term the Transmission grid will be separated into regional grids to enable effective management”, he said.
“Generating at installed capacity is a goal for government-owned plants, while private companies are encouraged to invest further. Off-grid and distributed generation, utilizing renewables, will be a focal point, solar PV plants, small hydro plants, and wind farms will be strategically deployed”.
On power theft, the minister said tackling power theft and vandalism is paramount.
“This national responsibility requires joint efforts to protect our assets. The ministry has informed the NSA of recorded cases, and collective action is essential to eliminate these setbacks.”
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