Connect with us

Hi, what are you looking for?


FG says Power Firms Need N2trn to Improve Electricity Supply

Power Generation
Power Generation

Federal Government has said that Nigerian electricity companies need an estimated N2 trillion or about $2.5 billion in capital to improve power supply in Nigeria.

Bloomberg reported that the power sector would require new investors to revive it, adding that the sector can barely supply power to its 200 million population.

Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, said the companies were over-leveraged and under-capitalised, which has limited their capacity to invest in distributing electricity to households.

Industry sources noted that inadequate pricing, patchy revenue collection and a dilapidated national grid had left most residents in Africa’s most populated nation to produce their own power using noisy generators.

Bloomberg disclosed that in Lagos, Nigeria’s commercial capital, for instance, the grid delivered only 1,000 megawatts to the city of 25 million people.

It added that by contrast, Shanghai, with roughly the same population, supplies more than 30,000 megawatts at peak demand. It also stated that only 4,000 megawatts of Nigeria’s 13,000 megawatts of installed capacity for electricity generation were distributed to homes and businesses.

It added that in contrast, South Africa — with a population that’s a third the size of Nigeria’s and whose economy was crippled by almost-daily power cuts last year — had about 52,000 megawatts of capacity, three quarters of which comes from a debt-riddled state-owned utility running aged plants.

Verheijen said: “We need to set policies that facilitate reorganisation and recapitalisation and bring in new partners with new capital.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


You May Also Like


House of Representatives has resolved to probe the alleged unremitted N1.8 trillion and $342 million tax revenue owed to the federation by Multichoice Group....


Chukwuemeka Fred Agbata, CFA, MD/CEO of Anambra State ICT Agency, has championed a transformative approach to innovation in the civil service. His insights, shared...


Paul Pogba, former Manchester United midfielder, has reportedly been handed a four-year ban from football after failing a drugs test last August. The 30-year-old...


Mastercard and MTN Group Fintech have signed an agreement to provide all MTN MoMo customers with payment cards. In a joint statement on Thursday,...