The Association of Nigerian Electricity Distributors (ANED) has disclosed that the nation would require $40 billion (about N7.8 trillion) to attain a steady 20,000 mega watts (MW) of power supply in parts of the country.
ANED said the investment would be needed to strengthen the networks across the three-level value chain of generation, transmission and distribution in the medium term.
According to the group’s Executive Director, Sunday Oduntan, operators are seeking a Federal Government sovereign guarantee to enable them approach global lenders to secure the facility.
The Director pointed out that in spite of a recent increased in tariff, the operators were still running at a loss due to the high exchange rate and the consequent increase in the cost of procuring operational facilities.
He also lamented the non payment of about N60 billion debt owed the distribution companies (Discos) by Ministries, Departments and Agencies (MDAs) of government, including the military and paramilitary organisations for services rendered.
Mr. Oduntan appealed to the President Muhammadu Buhari to intervene by asking the debtor agencies to pay up and stop forthwith the intimidation of distribution officials.
He pointed out that about $7.5 billion of the sought grant would go as credit support for fuel purchases.
($1 = N198.5)
Electricity: Nigeria Requires $40b For 20,000mw – https://t.co/MMqQuQJOAr https://t.co/dgiX7IwNuo