The Federal Government needs to inject 10 billion dollars anually into the power sector for ten years to revive the sector and put an end to the liquidity challenges, the Minister of Power, Mr Adebayo Adelabu has indicated

Adelabu spoke in Abuja on Monday, at a one day investigative hearing on halting the new electricity tarrif hike by the Nigerian Electricity Regulatory Commission for onward implementation by the Distribution Companies.

The investigative hearing was organised by the Senate Committee on Power.

“For this sector to be revived, government must 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.
He said there must be commercial pricing for it to attract investors,
“If the value is still at N66 and government is not paying subsidy, the investors will not come.

“But now that we have increased tarrif for a Band, there are interests been shown by investors.”

The minister said the major challenge in the sector was absence of liquidity, saying that the sector has been operating on a subsidised tarrif regime,given the absence of a cost reflective tarrif.

He, however, pointed out that the subsidy had not be funded over the years as huge liabilities were being owned the Generating Companies (GenCos) and the Gas Companies.

Adelabu insisted that 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.

According to him, the increase is based on supply, saying that any customer that do not received 20 hours power supply will not be made to pay the new tarrif.

He said the government was committed to ensuring sustainable reform in the sector, saying that there was need to clear the outstanding debt owed GenCos and Gas companies.

To improve power supply, he said 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 ongoing investment of 26 small hydro power dams to boost electricity production across the country.

Members of the committee in their separate remarks decried the experiences of Nigerians on electricity supply over the years, despite the unbundling of the sector.

Sen.Lola Ashiru said Nigerians were paying for inefficiency of power sector operators.

Ashiru, who is Vice Chairman of the committee said there was a lot of inefficiency across the value chain of generation, transmission and distribution..

He said poor Nigerians must be protected, adding that there was need to consider a reversal of the tarrif increase .

Sen.Solomon Larlong said there was no consultation, before the increase, adding that issues of palliative should have been discussed and provided before the tarrif increase.

Sen .Enyinnaya 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.

He alleged that the company had received N32 billion in 20 years to meter Nigerian electricity consumers.

Sen.Adamu Alero said due consultation was not made before the tariff increase.

He said the public was not at peace with the increase, saying that the increase was over 200 per cent, hence the need for a reversal of the tarrif increase.

Other stakeholders’ that made presentation at the investigative hearing included the Nigerian Electricity Regulatory Commission (NERC), Manufacturers Association of Nigeria (NAN), Association of Power Generation (Gencos), Electricity Distribution Companies (DisCos) among others

Chairman, Security, Climate Change and Special Interventions Committee of the North East Development Commission, Rep. Sir. Sam Ifeanyi Onuigbo, has disclosed that Nigeria stands to derive huge benefits from renewable energy.

He noted that the country could accelerate its march towards industrialisation by utilising its enormous energy market, even as he expressed happiness that the Federal Government has demonstrated strong determination by creating the enabling environment.
Onuigbo, who sponsored Nigeria’s landmark Climate Change Act, known as Sam Onuigbo Climate Change Act 2021, made the declaration while speaking to journalists on his involvement in the 14th International Renewal Energy Agency (IRENA) Assembly, which took place in Abu Dhabi, United Arab Emirates.

He maintained that Nigeria has taken concrete steps not only to make the energy transition happen, but also strengthened the legal framework through the recent removal of Electricity from the Exclusive to the Concurrent legislative list.
“The subsequent enactment of the Electricity Act 2023 with provisions for off-grid and mini-grid generation and distribution of power are game changers. In all these, the President Ahmed Bola Tinubu administration has shown courage and direction.
“Other proofs of the country’s commitment to providing fertile grounds to benefit from the global ambition of tripling renewable energy capacity by 2030 and consequent industrialization are evident.
“They include, the Climate Change Act with its provision for research and development on renewables, Nigeria’s Clean Cooking Policy, which seeks to achieve universal clean cooking energy access by 2030, and recent provision of subsidies to support the development and the operation of privately-owned and operated solar hybrid mini-grids in unserved and underserved areas courtesy of a US$750m World Bank loan facilitated under the Distributed Access through Renewable Energy Scale-up (DARES) project,” he stated.
While emphasising the potential of Nigeria’s energy market of 90million underserved people, Ounigbo who was a member of the 8th and 9th National Assembly, disclosed that he was able to put those indices out to the world through the series of interventions he made during the 14th IRENA Assembly.
He added: “I made presentations at the IRENA Legislators Forum; Regional Energy Transition Outlooks in Africa: Operational Workshop on Regional Scenarios; World Future Energy Summit hosted by MASDAR, all of which took place between 16-19 April, 2024.
“It is evident that with the Renewed Hope Agenda of President Tinubu, Nigeria constitutes a fertile ground for investments in renewables. However, there is need to sound a note or warning to international investors.
“They should be wary of repeating similar mistakes made by their predecessors during Nigeria’s telecommunications’ sector revolution, which saw many prospective investors lose out on the huge market due to wrong perceptions and poor business calculations and decisions.”
While urging forward looking investors to take maximum advantage of the current opportunity both for the growth of their businesses, and the country’s growth, Onuigbo said the tenor of conversations at the IRENA 2024 in Abu Dhabi, United Arab Emirates, showed that the world is focused on renewable energy investments and expansion.
Investors, innovators, academics, business leaders, heads of multinationals, heads of international organisations, Members of Parliament, representatives of governments, among other interest groups, gathered during this period to exchange ideas on how to attain global commitment at COP28 to triple renewable energy by 2030 and thus boost sustainable growth.

By Ahmed Rufa’i, Dutse

The Dangote Group of Companies has promised to boost the power generation at the national grid through increased energy production in the country.

This was contained in a press statement issued by the communication officer in charge of north, Dangote Group of Companies, Malam Jibril Abubakar, said the group general manager of Dangote Sugar Refinery (DSR) Numan in Adamawa state, Mr Bello Abdullahi Dan-Musa.

According to the statement, “The company operates an independent power system, and that excess energy will be redirected to the national grid.”

The statement stated further that “the power, from the Dangote Sugar Refinery, Numan, when redirected to the National Grid has the potential to contribute immensely to the rapid development of the economy of the entire Northeast”.
He added that the energy will bring about accelerated development and industrialization in the region.

“President of the Dangote Group, Aliko Dangote, had said that upon completion of the BIP projects, his sugar company will be able to create about three hundred thousand direct and indirect jobs, with positive multiplier effects on the national economy”.

The Group General manager added that “The Sugar Refinery (DSR) employs no fewer than 7,000 workers yearly in its Backward Integration Project (BIP) in Numan, Adamawa State

“The Dangote Group is Nigeria’s biggest employer of labour after the government.”

Mr. Dan-Musa said most of the employees are often engaged on a temporary basis during the cane production season.

Recently, he said the company paid over N500 million to the out-growers for the sugarcane they produced under the DSR Numan out-growers scheme.

The current capacity of the DSR Numan refinery of 4,800 Tons of Cane Per Day (TCD), he said, is being upgraded to 6,000 TCD by end of 2023, 9,800TCD by 2024 and subsequently to 15,000TCD.

According to Mr. Dan-Musa, Dangote Sugar Refinery Numan has contributed immensely in the realization of the Backward Integration program of the Federal Government.

He added that the company has acquired state of the art machines to support its production process, adding that its facilities are environmentally friendly.

The Group General Manager stated further that “its Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets”.