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25 million households live without power – Minister of Power

By on March 19, 2014

More than 25 million Nigerian households do not have access to electricity, translating into less than 40 per cent coverage, the Minister of Power, Prof. Chinedu Nebo, has revealed.

This, according to him, is despite recent advances made in the sector with respect to the privatisation of the legacy assets of the defunct Power Holding Company of Nigeria.

Nebo, who said these in Abuja on Monday, stated that the Federal Government was working hard to ensure that power penetrated remote villages and cities that had yet to benefit from adequate electricity supply.

He said, “It is, however, sad to note that despite all these advances, Nigeria still has less than 40 per cent access to electricity, with more than 25 million households without access.

“The Federal Government is targeting up to 75 per cent penetration by 2020. To achieve this ambitious target, the Federal Ministry of Power is working on a national road map on access to electricity and a comprehensive Renewable Energy Policy, which will ensure massive connections through on-grid and off-grid solutions.”

Nebo said the plan would require the engagement and commitment of all stakeholders in the power distribution and generation companies, development agencies, financial institutions, the Rural Electrification Agency and others.

He explained that the Operation Light-up Rural Nigeria was a project to give off-grid access to communities far flung from the national grid.

The minister added that President Goodluck Jonathan had inaugurated the light-up Nigeria pilot projects at Durumi, Sape and Waru in Abuja in January 2014 and that the next plan was to replicate it in all states of the federation.

Nebo, however, noted that the privatisation of the power sector would not automatically translate to an efficient electricity market as there were teething problems in the industry before it was privatised.

He said, “This entire privatisation process is akin to changing the owner/driver of a car. The mere change of the driver, on its own, does not automatically translate to an efficient performance of the car.

“We must now work together to develop the emerging electricity market with a strong, responsive and yet proactive regulator and other participants meeting all obligations, including their respective business plans.”

The minister observed that the major aim of the power sector reform was for the sector to act as the catalyst for Nigeria’s economic growth.

He said it was anticipated that the reform would move the country towards industrialisation, create more jobs, result in higher Gross Domestic Product, increase household income and improve the standard of living as well as improve youth development and social security.

“The main task now is to ensure that the impact of the privatisation is felt in homes and businesses all across the country. Clearly, we have moved aggressively to fully implement the road map on power. The early signs of improvement have been acknowledged but are not yet evenly felt,” Nebo added.

The minister outlined gas supply constraints, security issues, transmission problems and revenue collection as some of the major challenges inhibiting the fulfilment of all the conditions precedent before the declaration of the Transitional Electricity Market.

“As you are aware, the declaration of the TEM will automatically kick in the contractual obligations of all market participants,” he noted.

 

 

[Punch]