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We must transmit 80 to 85% of generated power to customers to stay “liquid” – Power Minister  

September 19, 2023
in News
We must transmit 80 to 85% of generated power to customers to stay “liquid” – Power Minister  
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Nigeria’s Honorable Minister for Power, Adebayo Adelabu has said that Nigeria’s power sector challenges will come to an end if the Nigerian Electricity Supply Industry (NESI) can transmit 80 to 85% of generated power to customers to stay liquid.  

He said this during his address on Tuesday, September 19, at the ongoing Nigeria Energy conference held in Lagos State.

While acknowledging energy as a critical aspect of Nigeria’s economy, he said no meaningful economic growth can be achieved without energy.  

The three-year pledge 

According to him, he is determined to make an impact and transform the sector. He said that within the next three years, he will work to get Nigeria to 20,000 MW and transmit 80% to end users in the country.

He emphasized the need for metering in all households and businesses to ensure proper collection. 

He said: 

“If we cannot transmit 80 to 85% of the generated power to customers, then we are wasting investments. We must invest in metering technology, if we can eliminate the 8 million metering gap in Nigeria and come up with technology to ensure that collections are monitored, and we can collect up to 90% of power distributed, of course, liquidity is assured in this country.  
“I am confident that the narratives in the power sector which is confronted with several challenges will change in the near future. The challenges we face ensuring access to reliable and affordable energy for all are quite complex and range from issues of energy security, and sustainability to addressing climate change, and will require collective efforts to surmount these challenges to realize our dreams of socio-economic development in our country.”  

Privatization progress leaves room for more effort 

He acknowledged the fact that some progress has been made in the power sector value chain since privatization a decade ago, however, he noted that more needs to be done. He said: 

“There still remains a huge gap, especially in delivering adequate and stable power supply to consumers nationwide. The truth of the matter is, that all the progress we say we have made still creates efforts to be made if energy that is reliable and affordable cannot reach the end consumers, I mean the households, small businesses, institutions, and industries.  
“I am however glad that in the recent past, stakeholders in the sector particularly experts and investors, have demonstrated reasonable interest and confidence in transforming the sector. I am confident that the impact will soon be felt by all Nigerians.” 

Opportunities created by power sector challenges 

According to the Honorable Minister, amidst Nigeria’s power sector challenges lie remarkable opportunities. He said these challenges beckon Nigeria to embrace a transformative journey, one powered by renewable energy sources like solar, hydropower, and wind.  

“This isn’t just a chance to shrink our carbon footprint; it’s an invitation to foster employment and drive robust economic growth,” he said.  

He stated further that in this transformative pursuit, investments in cutting-edge technologies and pioneering innovations become imperative.

He called on the need for a revolution that reshapes how we generate, transmit, distribute, and consume electricity. This transformation, according to him, isn’t a solitary endeavour it’s a collaborative journey.

The sector’s advancement hinges on cohesive collaboration, knowledge sharing, and fostering robust partnerships. 

He also emphasized a green revolution in Nigeria’s transportation systems, propelled by electric vehicles and hydrogen technology, which he referred to as a necessity because it aligns us with a sustainable future, where our very mode of mobility echoes our commitment to a cleaner, brighter tomorrow. 

He said: 

“Nigeria has a long-term energy expansion plan of about 60,000 megawatts (MW) by 2060, we have a medium-term target of 30,000 MW by 2030, these are not targets that are not achievable. Today, South Korea which has less than 50 million population figures, has well over 130,000 MW of power, they are also able to transmit, distribute and get the power to the doorsteps of end users.
Who says 60,000 MW is not achievable in less than 40 years in Nigeria? It is and it requires the collective efforts of all of us.” 

The Minister, articulating a forward-thinking perspective, underscored how the Electricity Act stands as a harbinger of transformative changes. Its implications are vast and promising, poised to elevate access to electricity, enhance service quality, and drive critical infrastructural development. 

This act is a catalyst for a burgeoning investment landscape. It sparks competition within the Nigerian Electricity Supply Industry (NESI), presenting a dynamic ecosystem where innovation and progress thrive.

In essence, it sets the stage for a future where a reliable, accessible, and efficient electricity sector becomes a cornerstone of national development. 

Download Nairametrics App for breaking news and market intelligence.
   

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