With the planned massive increase in the generation aspect of the power sector in Nigeria, a whopping $3.4 billion is required in investment between now and 2016.
According to the Minister of Power, Prof. Chinedu Nebo, the the huge investment will bring the transmission grid to evacuate all the generated power.
The minister was speaking on Monday at the presidential power reform transactions signing ceremony held the Banquet Hall of the State House, Abuja.
He said: “The massive increase in generation underpins the need for a robust transmission grid.
“Currently, our grid remains a weak link with a wheeling capacity of about 4,800 mega watts.
“With government’s objective to achieve 10,000 mw in 2014 and 20,000 mw in 2016, the urgent need to expand our transmission capability to evacuate the projected additions becomes imminent.
“Government is working out the funding of Transmission Company of Nigeria, long term expansion plan from a mix, which will include the Transmission Development Fund, International Development Banks and multilateral agencies.”
Nebo admitted that driving the reform agenda has not been easy.
He said the reform has had its setbacks and slips due to the unprecedented size and scope of the reform programme.
Prof Nebo expressed optimism that one if the challenges, the labour issue, will, hopefully, be resolved by the end of June.
In his remarks, President Goodlcuk Jonathan said the issue of corruption was being amplified, insisting that it has reduced considerably.
The President expressed satisfaction with the transparent manner in which the ongoing power sector reform is being carries out, saying there was no issue of corruption or manipulation.
He, therefore, enjoined the people to take keen interest in the way and manner government business is being conducted now, urging Nigerians to always protect what belongs to them.
President Jonathan cited the achievements recorded in the distribution of fertilizer where government opted for a transparent manner of getting the product to the farmers directly rather than awarding contracts.
His words: “Let me continue to assure Nigerians that yes, there are issues of corruption in this country but somehow it has been over amplified.
“People should watch how we have been conducting government business.
“We have been bringing down the issue of corruption gradually.
“If you look at the fertilizer sector, you will agree with me that if government actors are interested, we would have continued the same story of buying all kinds of things, awarding all kinds of contracts in the name of fertilizer.
“But we are not doing that.
“We have sanitized that sector.
“Look at the power sector, when we started initially there were stories in the papers but at the end, even when I was in the US, companies from there that participated said publicly that the process was transparent and issue of corruption was not there.
“At least today we have also heard directly that the process was transparent and that there were no issues of manipulations or corruption.
“I plead with Nigerians that the country belongs to all of us and we will all protect what belongs to us, what belongs to our children and what belongs to the generation yet unborn.”
The President commended the governors, the development partners and the private sector for showing interest in the power sector reform.
He said: “Let me commend all our governors for their interest in this business and indeed our development partners and our private sector investors for having confidence in us to place this huge investment in this country.
“I am particularly pleased to hear directly from the private sector that the process was transparent and those stories of corruption were not heard.
“This age-long inadequate power supply will be brought to an end by God’s grace.
“Nigerians must have electricity for domestic and industrial use.”
The ceremony witnessed the handing over of 25 per cent payment certificates to the five Generating Companies and 10 Distribution Companies that have made payment. Other agreements signed were for gas supply, generation agreement with the bulk traders and joint development agreement among others.
Tony Elumelu, whose company, Transcorp, emerged the preferred bidder for the Ugheli Power Plant, promised to work with government to ensure the success of the privatization process.
Elumelu said: “You said let there be light and what we are doing today is in furtherance of your call.
“The GENCOS are tested investors.
“Mr. President, we will work with you to make sure that there is indeed power in Nigeria.”
Also speaking on behalf of the Distribution Companies, Tunde Ayeni, whose company bought Ibadan and Yola distribution companies, commended the President for initiating the reform agenda.
Ayeni said: “We want to commit ourselves that we will improve power generation in the country.”
Present at the ceremony were Vice President Namadi Sambo, Governors Emanuel Uduaghan of Delta State, Ibrahim Shema of Katsina State, Gabriel Suswam of Benue State and Muritala Nyako of Adamawa State.
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