Hamisu Muhammad
6 November 2009
Abuja — With seven weeks left in the Federal Government's promised 6,000megawatts power generation target by year's end, the country currently generates 2,900mw of power even though all the $5.09 billion [about N762.93 billion] special intervention funds for the sector this year have been spent. This much became clear yesterday from the speech by Minister of Power Mr. Remi Babalola at his Ministerial Press Briefing.
Babalola said the country's current power generation capacity is within the range of 2,900 mw to 3,000mw. He said since February this year, the Federal Government has injected $5.09 billion (N762.93 billion) into the National Integrated Power Projects. He said the NIPP projects are expected to add 4,770mw to the national grid by the end of 2011. The first unit of the project is expected to be commissioned in the first quarter of 2011, he said.
The administration of former President Olusegun Obasanjo had spent some $10 billion on the same NIPP projects, but none of them was completed at the end of Obasanjo's tenure in May 2007.
Babalola said yesterday that a comprehensive review of the NIPP projects to ascertain the cost of completing them toward the realisation of the 10,000mw by December 2011 has been completed.
He said the funding of the project, which was stopped in May 2007, resumed in February 2009 and a provision of N762.95 billion intervention funds was made in order to complete the projects.
The NIPP projects include Calabar, expected to generate 562mw; Egbema [337mw], Ihovbor [450mw], Gbarian [225mw], Sapele [450mw], Omoku [225mw] and Alaoji [960mw]. Other NIPP projects are Papalanto [675mw], Omotosho [451mw] and Geregu, 434mw.
According to Babalola, beside the NIPP projects, the Power Ministry also had total capital releases of N53.2 billion as at the end of September 2009. He said as at October 26, the ministry and its agencies had utilised N18.9 billion of these funds, or 36% of the total capital releases. He also said out of the appropriated sum of N78.97 billion, N12.29 billion cannot be utilised by the ministry and its agencies.
Speaking on the government's much-touted 6,000mw power target, Babalola said the ministry adopted a strategic implementation plan which was based on optimising the existing capacity of PHCN's power plants "through an aggressive repair and rehabilitation exercise."
According to him, 6,000mw "is not on its own enough to satisfy the country's needs. "6000mw cannot solve our problems but it is the beginning of solving our problems... At the moment, about 70 million Nigerians have no access to electricity, and that requires huge investment and time to meet that gap".
Babalola also said "The challenge of the electricity sector is gas required to power the thermal plants. That is why we refer you to the efforts of the Minister of Petroleum Resources, NNPC, NGC. They are the ones responsible for gas generation." He said what the country needs to power the thermal plants is about 3 billion scf of gas. He said with full supply of gas, PHCN and the NIPPs are capable of generating over 5000mw as at today.
Also speaking, Minister of State for Power Architect Nuhu S. Wya said "Nigerians have challenged this administration to turn around the power sector and Mr President has taken that challenge seriously by tasking the ministry with measurable targets that will impact positively on the socio-economic well being of Nigerians."
Administrator of the Nigeria Electricity Regulatory Commission [NERC] Immamudden Talba said at the event that the IPPs that received operating licences from the commission are not yet forthcoming because of the gas constraint in the country. He said NERC is currently discussing with some of them to seek for alternative means of generating electricity without gas.
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we nigeria's are tired of failled promises by nigerian presidency and leaders .since obasanjo spent such huge of money like $10mn without achieving anything and after he goes free from this huge crimes he commited .who will believe in yaradua's statement,can he get to it ,since he stole the seat of the president like his predicesor ,nobody vote for him and he is the president of nigeria . he is imposed on people by force .i think its funny to say that nigeria has vision neither to say that nigeria have ambition.wake up my fellow nigerians before its too late.nigeria will be a failled state if urgent effort is not made to bring transparent and credible electoral formation ,must especially internal democracy.(PDP) is dragging nigeria backward.