THE NATION

Wednesday, July 30, 2008  

Nigeria requires $484.6b to resolve power sector crises, says official From Emeka Anuforo, Abuja

TO totally solve the power sector problem in Nigeria, the Federal Government requires $484.62 billion (N56.7 trillion), going by official figures released yesterday in Abuja.

Director-General of the Energy Commission of Nigeria (ECN), Professor Abubakar Sambo, who spoke at a national workshop and exhibition on participation of state governments in the power sector, in Abuja, stressed that the amount was required to meet the nation's power demands from now till the year 2030 at 13 per cent growth rate.

Quoting a recent report conducted by his commission on the power sector, he disclosed that an estimated total investment of $484.62 billion is needed by the federal government to meet the energy demand projections of 297,900 megawatts with a 13 per cent GDP growth by 2030.

To achieve the targets, he observed that 11, 686 mega watts would be required every year.

He said: "The corresponding cumulative investment cost (investment and operations costs) for the 25 years is $484.62 billion which means investing $80.77 billion every five years within the period.

"The demand projection with 11.5 per cent GDP growth by 2005 will be 5,746mw, 16000mw by 2010, 31240mw by 2015, 70,760 by 2020; 137,370 by 2025 and 250,000 by 2030."

He stressed that in the course of the study, all the available energy resources in the country were considered in order to broaden the nation's energy supply mix and enhance its energy security" therefore called on states governments, private sector and foreign investors to get involved in the investment as federal government alone cannot provide this level of funding.

Also speaking, the Chairman and Chief Executive Officer of the Nigerian Electricity Regulatory Commission, Dr. Ransome Owan, stressed that in fulfillment of its mandate, the ECN had carried out an extensive research on the electric sector demand profile in Nigeria, adding that the study was very important and useful to investors in the power sector.

"On our part, NERC has put in place clear and transparent processes, procedures, rules and regulations to encourage public-private participation in the Nigerian power sector. We strive to involve the public in our rule-making processes and so far, we have received positive responses from industry stakeholders including consumers of electricity power in Nigeria," he said.

Owan stressed that all these steps had been taken to assure investors that the nation was committed to meeting its goal of adequate supply by 2011.

He added: "We have so far license 26 IPPs with a total capacity of 10, 031 mw and we hope that after this workshop, we will receive a lot more applications for consideration."