The Minister of Power, Adebayo Adelabu, has announced that the Federal Government is set to release $800 million for the construction of substations and distribution networks as part of the Presidential Power Initiative (PPI).
According to the minister, the investment will be divided into two portions: $400 million for Lot 2, covering the franchise areas of Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs), and $400 million for Lot 3, covering the franchise areas of Abuja, Kaduna, Jos, and Kano DISCOs.
A statement issued on Sunday by Bolaji Tunji, the minister’s Special Adviser on Media and Strategic Communication, quoted Adelabu during a tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China.
However, the minister assured that despite this setback, the government aims to increase power generation to 6,000 megawatts by the end of the year.
During an interactive session with TBEA management, the minister reiterated Nigeria’s commitment to collaborating with world-class organizations like TBEA to realize President Bola Tinubu’s vision for the power sector.
The statement also emphasized the minister’s concern over the outdated and fragile transmission and distribution infrastructure that has historically hampered industrial growth, with over 59 percent of Nigerian industries relying on self-generated power due to grid unreliability.
Adelabu noted that under President Bola Tinubu’s administration, power generation increased from 4,000 megawatts to 5,170 megawatts within a year.
He added that the administration is targeting 6,000 megawatts by the end of the year and 30 gigawatts by 2030.
The President of TBEA Company Limited, Huang Hanjie, expressed the company’s support for Nigeria’s power sector goals and offered to share their extensive global experience in energy provision. Hanjie commended the recent improvements in power generation and transmission and confirmed TBEA’s interest in contributing expertise to the proposed super grid project.
