Electricity Sector Gulps N10trn As FG Unveils 24-Hour Supply Plan For Lagos-Ogun, Abuja

The Federal Government has unveiled plans to pilot 24-hour electricity supply in the Lagos-Ogun axis and the Abuja franchise area, as part of a four-pronged roadmap to fix the country’s troubled power sector.

Meanwhile, it was also revealed that federal government has spent over N10 trillion on the Nigerian Electricity Supply Industry (NESI) since privatisation in 2013.

The Minister of Power, Chief Joseph Tegbe, disclosed this the 24-hour electricity supply plans on Thursday while declaring open the 6th Edition of the Annual Conference of the Power Correspondents Association of Nigeria (PCAN) at the Nicon Luxury Hotel, Abuja.

Represented by Mr. Martins Olajide, Special Adviser, Admin and Project, Ministry of Power, Tegbe said the two areas, which together account for over 50 per cent of national demand, would serve as the pilot for the proposed 24-hour energy zones, with implementation “guided by technical readiness and commercial viability.”

He said the roadmap rests on Grid Stabilisation, Sector Liquidity and Sustainability, Asset Optimisation, and Expansion and Enhancement of the grid.

It will use a corridor approach to align generation, transmission and distribution with demand in the Lagos-Ogun, Benin-Enugu-Port Harcourt and Abuja-Kaduna-Kano clusters. A technical audit has been commissioned to guide its sequencing.

“Every serious conversation about Nigeria’s industrial future eventually arrives at the question of power,” the minister said.

He said President Bola Ahmed Tinubu approved a ₦3.3 trillion plan to settle verified legacy debts owed to generation companies, of which ₦1.23 trillion has been raised.

According to him, over 2.8 million customers have been metered under the Presidential Metering Initiative, while more than 15,000MVA of transmission capacity was added between 2023 and October 2026, adding that about 1,300MVA of that came in the last two months.

The Managing Director/Chief Executive Officer of FGN Power Company Limited, Mr Kenny Anuwe, put the government’s total investment in the sector in perspective in his keynote address.

“Government has invested over 10 trillion naira in the electricity sector since the advent of privatisation,” he said. “If government did not put that money in, the industry would not be standing.”

He added that about $237 million had gone into 16 transmission lines covering 606 kilometres, with a cumulative capacity improvement of just over 7,000 megawatts.

Anuwe, however, lamented that government still provides over 95 per cent of new infrastructure investment in the sector. “That’s not why we privatised,” he said.

He disclosed that a $2.3 billion project is currently being financed, with $1.3 billion from Europe and $1 billion from China. The federal government’s equity in each deal is 15 per cent.

He said the Presidential Power Initiative targets 5,540MW by 2029 and a reliability improvement of at least 60 per cent.

Looking ahead, he said FGN Power Company should be capitalised with at least $1 billion, with the Africa Finance Corporation (AFC) matching it, while other financiers bring in $18 billion. “Infrastructure is not all we need,” he said, calling for private capital through models such as blended finance.

The PCAN Chairman, Mr Obas Esiedesa, urged stakeholders to address the recurring decline in generation between November and March.

He said reduced water inflows to hydro stations and gas supply constraints to thermal plants were responsible.

“The objective is not merely to identify problems but to contribute ideas that can inform policies, attract investments and improve electricity supply to Nigerians,” he said.

The Managing Director/CEO of the Nigerian Electricity Management Services Agency (NEMSA), Engr. Adesayo Olusegun Michael, said improved supply must go hand in hand with safety.

“You cannot have infrastructure that is not safe. You cannot have infrastructure that does not comply with regulations,” he said. He urged journalists to give greater prominence to electrical safety awareness and public education.

Chdi Ugwu is a correspondent with Independent Newspapers.

Save my name, email, and website in this browser for the next time I comment.

Independent Newspapers Limited, registered on July 17, 2001 (RC No: 419927), commenced publication on October 1, 2001. With registered office at 15b, Daranijo Street, off Odusami street, off Wemco road, Ogba, Ikeja