State Governments To Generate Power To Their States – Minister

iexclusivenews – Nigeria is facing a severe power crisis as the federal government struggles to subsidise electricity for its citizens. The Minister of Power, Mr. Adelabu, revealed some shocking facts about the state of the power sector in a press conference in Abuja on Wednesday.

Here are some of the key points he made:

Subsidy Gap

The minister said that the federal government has allocated only 450 billion naira for electricity subsidy in the 2024 budget, but the actual subsidy requirement is over 2 trillion naira.

This means that the government cannot afford to continue to subsidise electricity at the current rate, and may have to increase tariffs or cut off supply to some consumers.

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State Power Generation

State Governments To Generate Power To Their States – Minister

The minister said that the federal government has decided to allow state governments to generate and distribute power independently to their states, without relying on the national grid.

This will enable states to meet their own power needs and reduce the burden on the grid.

The minister said that some states have already started to explore alternative sources of power, such as solar, wind, and hydro.

Power Grid Collapse

The minister said that the national grid has collapsed for about six times between December 2023 and now, due to various factors. He listed some of the causes of the grid collapse, such as:

– Shortage of gas supply to power plants

– Ageing and faulty machines in the grid value chain

– Low capacity to evacuate and transmit generated power

– Destruction of power infrastructure by insurgents in some parts of the North-East geopolitical zone

Abandoned Projects

The minister said that the Transmission Company of Nigeria (TCN) has over 100 abandoned projects across the country, due to variations on contract figures as a result of the fluctuations of the foreign exchange rate.

He said that the TCN will not award any new contracts until all the existing projects are completed and commissioned.

Mini Power Grids

The minister said that the federal government has earmarked over 50 billion naira in the 2024 budget to build mini grids to supply power to remote and rural areas.

He said that the mini grids will use renewable energy sources, such as solar and wind, and will be managed by local communities or private operators.

DisCos Performance

The minister said that the electricity distribution companies (DisCos) should improve their performance and service delivery, otherwise they will face sanctions from the government.

He said that the government will not hesitate to withdraw the licences of any DisCo that is found to be inefficient, corrupt, or fraudulent.

Security Measures

The minister said that he has reached out to the National Security Adviser, Mr. Ribadu, to help provide security for power infrastructure, especially in the North-East region where insurgents have been attacking power stations and transmission lines.

He said that the government is committed to protecting the power sector from sabotage and vandalism.