• Monday, April 22, 2024
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BusinessDay

FG eyes 6,100MW distribution for DisCos in 6 months

Power minister eyes CBN FX allocation to ramp up sector capacity

The Federal Government of Nigeria (FG) has set an ambitious target for the nation’s electricity Distribution Companies (DisCos) – distributing 6,100 megawatts (MW) of power within the next six months.

This announcement comes amidst continued public frustration over insufficient and unreliable electricity supply.

Adebayo Adelabu, Nigeria’s minister of power said the charge to the Discos to be prepared to uptake 6,100MW became necessary after the Transmission Company of Nigeria (TCN) successfully conducted system stress tests, where it demonstrated its ability to transmit over 8,100MW, alongside the proposed plans for a partial Sovereign Risk Guarantee (SRG) to enhance generation companies’ (Gencos) capacity.

Adelabu emphasised the urgency of boosting electricity generation capacity, stating, “3,500 megawatts is not acceptable, and we have plans to increase the capacity to a minimum of 6,000 to 6,500 within the next three to six months.”

He commended EKEDC for its achievements over the past decade and stressed the need for continuous improvement in the power sector to drive economic growth and development effectively.

Highlighting the critical role of the power sector in industrial and economic development, Adelabu compared Nigeria’s power generation capacity unfavourably to that of countries like Korea and China, underscoring the need for substantial improvement.

Addressing challenges in the power sector, Adelabu emphasised the importance of prioritising baseload power generation and gradually transitioning to cleaner energy sources to meet the nation’s energy needs effectively.

He acknowledged the persisting complaints about power outages and urged stakeholders to work collaboratively to address these challenges and improve service delivery.

Adelabu outlined the government’s strategy to prioritise service provision to customers in higher billing bands while gradually extending improved services to all segments through strategic infrastructure investments.

Recognising the role of Distribution Companies (DisCos) in customer service, Adelabu said it was important to ensure proactive engagement and efficient operations at this level to address consumer needs effectively.

He stressed the need for comprehensive reforms and transformation in all segments of the power sector, focusing on issues such as metering, vandalism, debt collection, and customer relations.

Adelabu highlighted the necessity of stimulating demand through customer engagement to ensure effective utilisation of generated power and underscored the importance of efficient distribution to prevent wastage.

The minister noted the government’s commitment to enhancing the sector’s performance through substantial investments in infrastructure and efficient customer response.