The Federal Government’s intervention fund for the electricity distribution companies increased from N2 trillion in May of this year to N2.9 trillion as of August.
This shows a growth of 45% throughout the time frame. The estimated total financing provided to the sector since privatization in 2013 is N2.9 trillion.
The Director-General of the Bureau of Public Enterprise, Alex Okoh, stated that a new loan in the amount of 2.3 billion Euros had been approved for the sector’s transmission and distribution units. The latest one, which came before the 2.3 billion euros, was $500 million from the World Bank in May for the field of power distribution.
“There are a lot of interventions going in that regard. There are 2.3 billion Euros for the transmission and distribution so that we can wheel more power for consumers,” Okoh stated
In November 2013, the Federal Government unbundled the Power Holding Company of Nigeria, PHCN and sold 18 utility firms to private investors.
The Federal Government said it spent a total of N1.7trn on the sector from 2017 to 2020. An addition of N1.7trn as of 2020, plus a $500m WB loan and the fresh 2.3 billion Euro, brings total funding to N2.9trn.
A total of financial investments so far made in the energy sector since privatisation can be said to have hit well over N2 trillion.
Director at Asteven Group and member of the Renewable Energy Association, REAN, Dr Segun Adaju,said that the solution to the power sector challenges was for the Federal Government to embrace renewable energies such as solar.
According to him, the solar market was currently witnessing an increase in demand due to the low power supply and the high cost of diesel.
“Yes, there is a boom in the solar market because the grid is always collapsing and everyone needs power. We now have more people coming to ask about the cost of installing solar panels. And you know there’s also an increase in the price of diesel,” he said.
Despite the huge government funding, the sector has been bedeviled by several woes such as constant power grid collapses, with six recorded so far this year alone.
