Nigeria’s Minister of Power, Adebayo Adelabu, has set ambitious goals to hike Nigeria’s power generation capacity to at least 20,000 megawatts (MW) within the next three years.
The capacity, according to the latest figures, stands at 12,522 MW, Platforms Africa reports.
Adelabu, who made this known while delivering his opening address on Day 1 at Nigeria Energy 2023, held in Lagos on Tuesday, also vowed to implement the 2023 Electricity Act, and prioritize universal metering to close over eight million metering gaps.
Saying that as a politician and Minister, he had a limited amount of time to spend in the power Ministry, the Minister declared; “I am committed to making a lasting impact in the sector before leaving. implement the 2023 Electricity Act, and prioritize universal metering to close over eight million metering gaps.reliable, and sustainable energy has never been greater than we have now.
Energy is one of the most critical issues in our time. The opportunity to delay or interact with industry players or power sector investors. It will hasten the pace of fact-gathering and leverage to understand the sector so well. What are the challenges, and how do we come together? To build workable solutions that will transform the power sector in Nigeria.
You will agree with me that energy is the lifeblood of any modern economy, and Nigeria is no exception. I can tell you no meaningful economic growth or industrial development can be achieved without energy.
We can talk about potentials from now till tomorrow potentials in Nigeria, the massive imbalance with natural resources, if there’s no energy, or there’s no power, all this amounts to nothing and it can never be converted into reality.
Sustainable Energy for fuels our industries, powers our homes, drives economic growth and it is the cornerstone upon which the progress and prosperity of nations are built.
Nigeria, abundant natural resources the growing population and expanding economic times stands on a pivotal lumen in its energy journey, because the demand for accessible, reliable and sustainable energy has never been greater than we have it now.
The National energy mix which comprises of 80% or 20% of transitional renewable energy respectively, gathered by national best practices such our REA sustainability and assessment goal. Despite this, our greatest challenges amid reliability as universal access to power for the served and the underserved in our society.
The challenges we faced ensuring access to reliable and affordable energy for are quite complex. It ranges from issues of energy security, sustainability to addressing climate change.
OPPORTUNITIES
The Ministry of Power is focused on the balance energy developments that drives socio economic transformation, thus satisfying the future utility and sustainable development nexus of energy security, sustainability and affordability. Thus, we are committed to identifying the challenges and see the inert opportunities in the energy sector in Nigeria. We seek collaborations in order to implement concrete action plan that will lead us towards a brighter and more sustainable energy future.
Minister of power, Adebayo Adelabu
I am confident that narrative in the power sector which is confronted with several challenges will change in the near future.
Nigeria power sector was privatised a decade ago to establish the competitive markets intended to improve management and efficiency, attract private investments, increase generation and provide a reliable and cost-efficient power supply to Nigeria. Although some progresses have been made across the power sector value chain, there is still a huge gap especially in the delivery of adequate and stable power supply to consumers nationwide.
The truth of the matter is all these programs that we say we are best, they still remain, an effort is energy that is reliable and affordable, cannot reach the end consumers and households, small businesses, institutions and industries.
I am glad that in the recent past, stakeholders in the sector, but similar experts and investors have demonstrated reasonable interests and confidence in transforming the sector.
I have confidence that impact will soon be felt by all Nigerians. Consequently, it will require collective efforts to surmount these challenges in order to realize our dreams of social economic developments in our country.
NIGERIAN ELECTRICITY ACT, 2023
ENERGY MIX
One of the fundamental opportunities of the Nigerian Electricity Act is the energy mix and role that renewables can play in the power landscape. These challenges also lie incredible opportunities such as annexing power from renewable energy sources for example, solar, hydro, wind, etc. which will not only reduce our carbon footprints in terms of the nation, but also create jobs and stimulate economic growth.
Nigeria electricity Act 2023, signed into law by His Excellency President Bola Ahmed Tinubu on the eighth of June 2023 is a testament to our commitment to transforming the industry landscape in Nigeria.
As a game changer that reformed the NESI, the electricity Act will undoubtedly engender increased access to electricity and regulatory oversight, clean energy transition, improved service delivery and infrastructural developments.
In particular, the ACT will stimulate economic growth by creating a conducive environment for investment and competition. It will generate job opportunities encourage entrepreneurship and attracting foreign direct investments.
SOUTH KOREA
South Korea to attend the just energy transition and transformation conference and South Korea. This is country that used to generate less than 4000 megawatts for its less than 50 million population. They have increased their capacity to generate well over 130 ,000 megawatts per hour. They want to transmit and distribute and get it to the doorsteps of the end users.
POWER SECTOR LIQUIDITY
Of course, liquidities are short in this country. This industry needs liquidity, and serious equity from committed investors.
AWARENESS AGAINST VANDALISM
We also need to improve on our communication to the general public, who have a lot of roles to play. The issues of vandalization, by passing of meters and damaging to DisCo infrastructure. we need to let them know they have a role to play. Because this journey towards achieving our targets is not something that just a single operator in the value chain can achieve.
INVESTMENT SCOPE
Of course, a lot of investment is required. From the three weeks I spent in office. I’ve seen so much humongous investments that have come into this sector. But what do we have to show for it for those investments to reap the benefit of those investment, additional investments in form of equity and capex need to come into this industry.
The power sector is not an industry for short term players to invest in less than two to three years and expect to make maximum benefits. This is an industry that require medium to long term investments. Investors must understand that the moment we are able to break even, we will start making profits in the power sector.
TARGET
In an attempt to set targets for the power sector, we also need to set short term target and ensure that between now and next three years, my target is for us to increase the generation capacity to at least 20,000 megawatts in the next five years. As a politician and a minister of power, I must tell you that I have limited amount of time to spend in the power sector and I must make impact. I’m determined to make impact and diagnose the issues to a large extent, and I found out that the solutions are not as difficult as we all believe.
IMPROVEMENT IN SERVICE DELIVERY
Make mention that achieving a functional and affordable power to is not a task that is not possible. It is quite possible. Nigeria has energy expansion plan of 60,000 Mega megawatts by 2060, we have a medium-term target 2030 This are not target that are not achievable.
This is an industry that I believe that’s different and better than the telecoms industry. Look at the telecoms operators across all the segments of the value chain. All of them have a good story to tell. The same should happen with the power sector, from the gas companies to the GenCo, to TCN and the DIScO. We must be telling good stories.
It is not just enough to generate power, as I’ve seen that we are actually in a very good position given the magnitude of interest expressed by investors too willing to come join and invest in Nigeria power sector to actually achieve the 30,000MW by 2030, and 60,000MW in 2o60. But how do we get this to the last mile that pay for all the segment of operators in the value chain.
If we cannot transmit at least 80 percent of what we generate, transmits and the DisCos to the customers, then we are wasting investment opportunities.
We need to invest in cutting edge technologies and innovative solutions that can transform the way we produce, transmit, distribute, and consume power.
END USERS TARGET
And it doesn’t stop there will you be able to evacuate and transports this generated power at the minimum of 80% of installed capacity to the end users of electricity.
METER
Beyond improving our transmission and distribution infrastructures, we must invest in meeting technology. Today we have over 8-million-meter gap in Nigeria. If can reduce or eliminate this gap and come up with technology to ensure that connections are monitored, and we are able to collect not less than 90 percents of power distributed.
we need to ramp up our investments in collection technology in order to close the meter gap as much as possible, all household, companies and government institutions and industries must be properly metered so that everybody account for the power they consume and then to pay for the utilization.
COLLABORATION
We must therefore never underestimate the power of strategic collaborations in this pivotal sector. We must align workable solutions to resolve identify challenges and leverage opportunities.
Who says that we cannot do 60,000MW is not achieve in the less that 40 years in Nigeria. It is the collective effort of all of all of us is actually required for this.
I cannot do this alone. I sincerely require a request for the supports that we’ll see ourselves as partners in progress. I am assuring you that with the kind of passion and determination that I have to make impact in the industry, I am ready to support all the stakeholders with all the political will that is required to our champions.
I’ve attended a number of conferences in Solids, industry, multi sectoral summits, and none of them end up just being talk shows this one because take something significant out of it. I have the responsibility for what ever happen in the industry.
We will need to harmonise our relationships, utilities and our investments across the GENCOS, TCN and DisCos to discuss the work to achieve that by 2030 and 2060.
Let us actively engage, learn or collaborate amongst ourselves. Let us inspire each other and challenge the status quo to create a better cleaner of most people’s energy future for their children and generations to come.
I am reassuring you that you are my full support of in achieving and political will be required to implement all the suggestions put forward by the stakeholders in order to ensure positive turnaround of the power sector.
Let us work together to complement this legislation effectively ensuring that its benefits are realized by all. let me emphasize there is a good ecosystem in the Nigerian Electricity Supply industry (NESI) to support for Government’s journey towards sustainable energy future.
We will achieve the innovations and partnerships that will not only benefit our nation, but also contributes to the global efforts to combat climate change and ensure a better quality of life all. Together we can power Nigeria to a more glorious and brighter future and prosperous future for which our government is committed.
This is one very important sector that our overworking and passionate President Bola Tinubu wishes to lead the deserved economic growth and national development. We cannot afford to fail in in this transformation efforts of his.
And lastly, on our new opportunities amid fuel subsidy removal include building the transport system with electric and hydrogen technology.
