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Business Nigeria's Power Sector Needs $5bn Yearly for Infrastructure- Prof. Nebo



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Nigeria's power sector needs about $5billion (N900billion) yearly to expand infrastructure and increase electricity generation from its current 3,700 megawatts (Mw) to 20,000 Mw, Prof. Chinedu Nebo revealed at the 4th edition of the WorldStage National Electricity Power Conference (WNEPC) in Lagos.

He said the money will be invested across the value chain to foster the growth of the sector. He said three core areas, which include generation; distribution and transmission need to be well funded in view of their critical roles in the sector.

“We are working towards making the sector effective and vibrant such that investors would get good yields. If you are bringing investors into the sector, such investors can only attend to you if they know that they would get good yields on their investments. A lot of supports have come to the sector through the United States Agency for International Development (USAID), Department for International Development (DFID), African Finance Corporation(AFC), World Bank, and other development agencies,”

He added that FG has employed the Nigeria Security and Civil Defence Corps (NSCDC) under the Infrastructure Security Surveillance program, through which it is monitoring the activities of people that vandalise gas pipelines.

Nebo said the Ministry of Power and Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation (NNPC) and other relevant stakeholders, have discussed how to make gas available to the power firms.

He said the government has set up Market Discipline Resolution Panel (MDRP), automated the system of paying for power, and introduced a concept called ‘Shadow Training’ through which it simulates activities in the sector, among other initiatives.

“There is a penalty if a company does not supply power for 15 days. The Nigerian Electricity Regulatory Commission (NERC) will sanction any company that violates the law. The major goal of the panel is to ensure amicable resolution of disputes among stakeholders in the sector. The panel has the right to punish offenders in line with the laws guiding the operation of the sector,” he added.