The President’s power reforms mean the #power will be back in your hands. Let’s keep moving forwards. #VoteGoodluck
No administration has made as much inroads into the power sector as the Goodluck Jonathan administration. When the administration came into power in 2011, it set out various actions for itself. These include:
- Power stability, reliability and sustainability
- Electricity market stability
- Human capacity development
- Reducing production cost and making manufacturing more competitive
- Diversification of energy mix (large hydros, renewable, coal)
- Improving policy and regulatory environment for rapid growth through private investment
- Empowering SMEs with more power supply and creating employment
To ensure availability of un-interrupted power supply to the consumers, the administration executed various distribution projects (maintenance/expansion) across the country through the 11 Electricity Distribution Companies (DisCos). This led to an increase of average power availability per day nationwide from 12 hours in 2011 to 16 hours in 2012.
Installed generating capacity grew from 9,097MW in 2011 to 9,920MW in 2013 while nominal transmission capacity grew 5,515MW to 6,870MW during the same period. Nominal distributive capacity increased from 6360MW to 7325MW.
The Goodluck Jonathan administration also embarked on extensive reforms in the power sector. The power reform institutions have been established and are in operation while the administration and labour have signed an agreement regarding the future of the staff and its implementation is at an advanced stage.
The privatization of the 10 Distribution Companies (DisCos) and five Generating Companies (GenCos) is also at an advanced stage. The Transmission Company of Nigeria (TCN) management has been handed over to Management Contractors, Manitoba of Canada, while the TCN Board has been inaugurated.
The power sector under President Goodluck Jonathan has gained tremendous foreign interest. Indeed, interest in Nigeria as a prospect for growth in renewable energy has been building, with the investment community exploring its potential – as evidenced by the $200 million Green Credit Line announced by the German Development Bank, KFW.
A Korean investment of $30 billion has been made in the generation of 10,000 MW of solar power, while the power sector can also boast of a $5 billion Canadian-Saudi Arabian joint-venture project that would generate 3,000 MW.
Minister of Power, Prof. Chinedu Nebo, sums this up succinctly: “Nigeria is one of the top four investment destinations in the world, and the number one in Africa. In terms of return on investment (ROI), Nigeria ranks fourth in the world, providing an average ROI of over 35%, having maintained that level over the last couple of years. POWERCHINA has an MoU with the Federal Ministry of Power to fund and provide financing for 20,000 MW at plants in Nigeria, and GE has committed to installing 10,000 MW, while Siemens has committed to a further 10,000 MW. Meanwhile, Daewoo from Korea is another involved party.”
“All these companies are committed to producing 1,000 MW every year for at least the next decade. The government has introduced a policy framework that makes Nigeria an investors’ haven. Within the power sector, the Nigerian Bulk Electricity Trading (NBET) company was set up for one primary purpose: to buy power from all the independent power producers (IPPs) that may not feel comfortable about direct sales to distribution companies or to the Transmission Company of Nigeria out of concerns of not receiving payment.”
“However, the NBET will buy this power from the IPPs on behalf of the transmission and distribution companies. Therefore, investors now know that regardless of the amount of power you produce, once you have a power purchase agreement from the NBET, you can’t lose your investment. When you consider the sum total of these initiatives, all things being equal, we will get to our destination.”
It is very clear that President Goodluck Jonathan’s policies are, indeed, transforming the power sector. The days of power outage are coming to an end and meaningful industrial production would soon be at an optimum. It is just a matter of time.
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