The Federal Government of Nigeria has announced a planned investment of $800 million into the construction of new power substations and distribution networks as part of the Presidential Power Initiative (PPI).
The announcement was made by Adebayo Adelabu, the Minister of Power, during his visit to the TBEA Southern Power Transmission and Distribution Industry in Beijing, China, where he was attending the China-Africa Cooperation Summit.
Adelabu explained that the investment will be divided into two phases:
- $400 million for upgrading the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas.
- $400 million for improving the Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
The minister expressed concern over recent power supply issues, particularly the rejection of power by DISCOs, which has led to a significant reduction in the national generation capacity. Despite these challenges, the government aims to increase power generation to 6,000 megawatts by the end of the year.
Adelabu highlighted the historical context of Nigeria’s power sector, noting that it took over 35 years to add an additional 2,000 megawatts to the grid since 1984. Under the current administration, power generation has increased from 4,000 megawatts to 5,170 megawatts in just one year.
Looking ahead, the government is targeting a total power generation capacity of 30 gigawatts by 2030, with 30% coming from renewable sources.
The minister also discussed plans for constructing a Western and Eastern super grid to address the limitations of the current national grid, which he said cannot fully support the country’s vision for the power sector.
Huang Hanjie, President of TBEA, assured support for Nigeria’s power sector vision and emphasized the company’s readiness to contribute to Nigeria’s energy needs, citing their ongoing projects in the country.
Adelabu’s statement underscores the government’s commitment to transforming Nigeria’s power sector, aiming to restore confidence in the national grid and improve energy access for industries and households.