The Minister of Power, Mr. Adebayo Adelabu, has highlighted the need for significant investment to rejuvenate Nigeria’s struggling power sector, stating that the Federal Government requires $10 billion annually over the next decade to address liquidity challenges and infrastructure deficiencies.
Speaking during a one-day investigative hearing organized by the Senate Committee on Power in Abuja, Adelabu emphasized the critical role of infrastructure in stabilizing the sector but acknowledged the financial constraints hindering such substantial investment within the country’s budgetary limits.
Adelabu underscored the importance of attracting investors to the power market to sustain the sector’s growth, advocating for commercial pricing to incentivize investment. He pointed out that increasing tariffs for certain bands has already sparked investor interest, but emphasized the persistent challenge of liquidity due to the absence of a cost-reflective tariff and unpaid subsidies.
Addressing lawmakers, Adelabu appealed for support in addressing the outstanding debt owed to operators across the value chain of generation, transmission, and distribution. He assured that customers experiencing less than 20 hours of power supply would not be subjected to the new tariff increase, emphasizing the government’s commitment to sustainable reform in the sector.
To enhance power supply, Adelabu highlighted ongoing investments in hydroelectric power, including the construction of the Zungeru hydroelectric power plant and the Kashimbila Hydroelectric power plant, along with investments in 26 small hydropower dams across the country.
However, members of the Senate Committee expressed concerns over the inefficiencies and poor service delivery in the power sector, with Senator Ola Ashiru criticizing Nigerians for bearing the brunt of sectoral inefficiencies. Senator Solomon Larlong and Senator Adamu Aliero called for a reversal of the tariff increase, citing inadequate consultation and the need for palliative measures.
Committee Chairman, Senator Eyinnaya Abaribe, emphasized the urgency of finding solutions to the sector’s challenges and ensuring liquidity, while also raising concerns about the non-appearance of a company, “ZIGLAKS,” over a failed agreement to provide prepaid meters. Abaribe called for accountability regarding the N32 billion received by the company over 20 years for metering Nigerian electricity consumers.