FG to secure $2.3bn investment to revamp power sector, says Adelabu

Adebayo Adelabu, minister of power, says the federal government is securing about $2.3 billion investment to revamp power transmission in Nigeria. 

Adelabu spoke during a meeting with Gautier Mignot, the European Union (EU) ambassador to Nigeria, in Abuja on Saturday.

He said the intervention is one of the viable improvements since the new administration came into power.

“Number one, in the area of energy access expansion, we have extended the grid to so many areas where there were no grid extensions. And we have also exploited renewable energy in our rural areas and semi-urban areas that were either underserved or unserved,” the minister said.

“Renewable energy in terms of solar energy, most especially, and we have small dams which we are using for hydro power supply. So we have achieved some level of energy expansion in terms of new generation.

“The second intervention with regard to the transmission is the Presidential Power Initiative (PPI), and you will recognize it better when I say Siemens Project. So we are actually securing the finance of close to $2.3 billion to ensure that we revamp or transform our transmission segments.”

Adelabu said the Germany government has been very instrumental in ensuring the success of the project, adding that “the Siemens is handling lots of the critical transmission projects there”.

He emphasised the importance of continued international collaboration, describing the power sector as the bedrock of Nigeria’s economic transformation.

“We are trying everything possible to ensure that we benefit from bilateral and multilateral relationships when it comes to gaining experience of the Western nations on the issue of power. The power sector is so critical to the optimal performance of every other sector,” Adelabu said.

The minister also highlighted progress under President Bola Tinubu’s administration, noting reforms and investments that have boosted generation and transmission.

“We have achieved a valuable generation capacity of 6,003 megawatts in Nigeria. We have also achieved the highest transmitted and distributed energy in the volume of 5,801.63, which has broken the previous record achieved in 2021.”

Adelabu acknowledged the support of international partners such as Germany, France, and development agencies like Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Agence Française de Développement (AFD), and the European Union (EU), particularly in renewables and grid infrastructure.

“EU as a body, the German Commission, the GIZ, the French AFD, the UK NIFE, all of them—they have been supportive in all areas, not just in renewables alone, even in grid activities too. But like Oliver Twist, we keep asking for more,” he said.

The minister said 10 power transformers and 10 mobile substations have been installed, improving grid stability and increasing daily grid supply to averages of 5,000 MW to 8,000 MW.