Industry close watchers insist that with the worrying issues of paucity of fund and absence of structural support from the federal government, the Nigeria power sector will continue to struggle.
Analysts opine that risks associated with investment to strengthen power supply networks in both the short and medium term is essential for efficient allocation of resources in the industry for a sustainable electricity future in Nigeria and the sub-region.
Ayodele Oni a specialist in international energy investment law & policy reiterates that Nigeria’s power sector has had a long history of under-investment in its energy value chain.
According to him, “Factors such as low tariffs, poor regulatory oversight, vandalism of gas infrastructure and weak governance had played different roles in further compounding the Nigerian power sector problems”
He commended government for the step taken in the past few months in the power sector, however, he posit that for the projection to gain traction and materialise there is need for government to be more radical in harnessing the potentials of same; including conducting an overhaul of private sector involvement and taking a proactive approach to dealing with the militating power sector challenges.
Dolapo Oni, Head, Energy Research, Ecobank Development Company (EDC) Nigeria Limited says there are several issues that need to be addressed in the power/ energy industry for rural electrification agenda to work.
Recent figure shows that Gencos require up to $4.2 billion refurbishing plants and increasing output, the Discos require about $1.8bn to improve distribution efficiency and minimise losses while the Transmission Company of Nigeria (TCN) requires about $3.8bn for upgrading existing infrastructure and developing new ones to meet required transmission capacity.
Oni observes that the amount of capital investment required to achieve this not available now under the current circumstance unless things improve.
Babatunde Raji Fashola, Minister of Power, Works and Housing while Inaugurating the Board of Rural Electrification Agency said the anchors for implementing Rural Access are: Completion of over 2000 Grid extension projects that started life as constituency projects since 1999 but have now either been abandoned or uncompleted;
Resuscitation of 6 (SIX) small Hydro dams and activation of their power component, which have received Federal Executive Council (FEC) approval, have been advertised, and we have received Expressions of Interest which we are evaluating.
Other are development of Independent Power Plants in 37 (THIRTY-SEVEN) federal universities and seven teaching hospitals in rural areas and the building of independent power grids from there to connect adjoining rural and unconnected communities.
KELECHI EWUZIE
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
