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FG spent N500bn on power sector liabilities

By on January 2, 2015

The Federal Government spent about N500bn to settle the liabilities and debts that threatened to truncate the power sector reform, the Supervising Minister of Information, Dr. Nuruddeen Mohammed, has said.

Mohammed, who said this at a press briefing on the nation’s economy in Abuja on Wednesday, also disclosed that the government was in discussion to buy power from several organisations that generate more electricity than they needed to run their businesses.

The minister said, “The Federal Government expended close to N500bn to settle debts/payoffsto allow progress in the power sector.

“The Federal Government, through the Central Bank of Nigeria, has provided a N213bn power sector intervention facility to be disbursed to the generation and distribution companies as well as gas suppliers.

“The funds are intended to take care of legacy debts that have hampered the operations of the new players in the power industry. The CBN, the Nigerian Electricity Regulatory Commission and Deposit Money Banks in the country have since signed a disbursement agreement in respect of the intervention fund.”

He added, “In order to get stranded power unto the grid, the Ministry of Power is coordinating negotiations with companies willing to generate power and export to the grid. These companies include Ajaokuta Steel Company (85MW); ALSCON (100MW); Lafarge Cement (40MW) and Kaduna Refinery (33.5MW).

“Let me draw your attention to one major milestone; that is, the ratification by the Federal Executive Council of the 30-Year National Integrated Infrastructure Master Plan, which had been in the works for a couple of years.

“The FEC approved the master plan in September 2014; and to give it legal backing, the processes leading to legislation are being undertaken. The Integrated Infrastructure Master Plan, which is projected to cost about $3.05tn, is the first such blueprint for accelerated integrated infrastructure development in the country.”

Mohammed said in the last four years, the Ministry of Water Resources had completed 37 dams of various sizes, rehabilitated 10 others, while construction works on 149 dams of various capacities were ongoing across the country.

According to him, the dams are useful for hydropower, irrigation, fishery development, flood control, tourism and recreation.

 

 

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