Tag: Power Sector

FG raises ₦501bn to clear power debts

Aminu Imam
FG to clear power debts

…Signals reset of electricity market The Federal Government has raised ₦501 billion in a fully-subscribed inaugural power sector bond, marking President Bola Tinubu’s most decisive move yet to resolve decade-long payment arrears that have crippled electricity generation and investment. Issued under the Presidential Power-Sector Debt Reduction Programme (PPSDRP), the Series-1 bond combines ₦300 billion raised from the capital market, with ₦201 billion allotted to power generation companies (GenCos). The proceeds will fund about half of verified debts owed for electricity supplied between February 2015 and March 2025, officials said at…

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Tinubu unveils ₦4tr bond, $2bn, China loan to reboot Nigeria’s power sector

Aminu Imam
FG unveils bond, China loan

…“Reforms, super grid, industrial power projects to end chronic outages” – Adelabu The Federal Government has announced sweeping financial and infrastructural interventions to overhaul Nigeria’s electricity sector, including a ₦4 trillion bond to clear outstanding debts to power generation companies (GenCos) and gas suppliers, as well as plans for a $2 billion loan from China’s Exim Bank to build a nationwide ‘super grid’. Minister of Power, Chief Adebayo Adelabu, disclosed this on Monday in Abuja at the Expert Forum on: ‘Uninterrupted Power: The Industrial Imperative’, organised by the Nigerian Economic…

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Well revoke licences of underperforming DisCos, GenCos Minister

Aminu Imam

The Federal Government has revealed that it has no intention of renewing licensing agreements for underperforming electricity distribution and generation companies (GenCos & DisCos) in Nigeria. The Minister of Power, Adebayo Adelabu disclosed this yesterday, while speaking during the commencement of the three-day inaugural Nigerian Electricity Supply Industry, NESI, Market Participants and Stakeholders Roundtable (NMPSR) in Abuja. He expressed regret over the fact that, a decade after the privatisation of the power sector in November 2013, the operators have been unable to fulfill the set objectives. Adelabu insisted that for…

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Diesel suppliers, generator dealers sabotaging power supply in Nigeria Ex-Minister, Nnaji

Aminu Imam

Former Minister of Power, Professor Bart Nnaji, has narrated how diesel suppliers and generator dealers are allegedly sabotaging some efforts by the federal government and power distribution companies to have steady electricity supply in Nigeria. The Minister, who stated this in Umuahia during a radio programme in the Abia State capital, tagged: South East Political Roundtable, disclosed that some of the generator and diesel dealers approached him, complaining that he (Nnaji) was ruining their businesses. Nnaji, who is the founder of Geometric Power, identified diesel suppliers and generator sellers as obstacles…

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Tinubus power reforms target ownership, management change of 6 DisCos, says el-Rufa’i

Aminu Imam

…Says President’s vision is uninterrupted electricity within 7yrs Immediate-past governor of Kaduna State, Nasir el-Rufa’i has revealed that ownership and management structure of at least six indebted electricity distribution companies (DisCos) would be changed in new reforms planned for the power sector of the President Bola Tinubu administration. El-Rufa’i, who is the ministerial nominee from Kaduna State and tipped to lead the Energy Ministry, revealed this on Tuesday when he was screened by the Senate. The former governor further disclosed that President Tinubu wants to achieve constant power supply in the…

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Manufacturers lose N10.1trillion yearly to power crisis MAN

Aminu Imam

The Manufacturers Association of Nigeria, (MAN) says the countrys shortage of electricity supply has been identified as a hindrance to the profitability of manufacturers, with an annual economic loss valued at about N10.1tn, about two per cent share of the countrys Gross Domestic Product. MAN noted that the unfavourable situation has positioned the country among the worst countries to do business, with a rank of 171 out of 190. The manufacturers made the claim in a statement in which it reacted to the assenting of the Electricity Bill by President…

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Electricity: Over $7.5bn spent on transmission under Buhari, yet darkness persists – Report

Aminu Imam

The projected gains expected from the over $7.5 billion loans taken by the President Muhammadu Buhari administration to overhaul the transmission segment of the electricity sector and deliver stable supply have remained a mirage with a few days to the end of the administration. Recall that the World Bank, African Development Bank (AfDB), Japan, France Development Agency and other financiers borrowed Nigeria over $7.5 billion to improve the weak wheeling capacity of the transmission network and the grid. But alleged widespread corruption, political considerations, non-alignment of the infrastructure, and the…

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Amended Constitution to allow States to generate, transmit electricity

Aminu Imam

President Muhammadu Buhari has signed into law the constitutional amendment allowing states in the country to licence, generate, transmit, and distribute electricity. This was made known in a tweet yesterday, by the presidential media spokesperson, Tolu Ogunlesi. He tweeted: President #MBuhari has signed 16 constitution amendment bills into law. By this signing, State Houses of Assembly & judiciaries now have constitutionally guaranteed financial independence, while railways have moved from Exclusive Legislative List to the concurrent list. Another landmark change: By virtue of the presidential assent, Nigerian states can now generate,…

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Cash-strapped Nigeria secures China funding to fix National Grid

Aminu Imam

The Transmission Company of Nigeria (TCN) has signed an agreement with a consortium of Chinese companies to secure financing required for projects that will enhance the national grid, the TCN head, Sule Abdul-Aziz, said. During a panel session at the Middle-East Energy Conference in Dubai on Tuesday, Abdul-Aziz said securing funding to complete over 100 ongoing transmission projects, including building transmission lines and sub-stations, has been difficult. But now there are companies coming to us with PPA, we signed MOUs and agreements with some of them so that they can…

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Zungeru hydro-power project to be commissioned in Q1 2023 – FG

Aminu Imam

The Federal Government says the $1.2 billion Zungeru hydro-power dam project, constructed in Niger State, will be ready for inauguration by the first quarter (Q1) of 2023. According to an issued statement on Thursday by the Secretary to the State Government (SSG), Ahmed Matane, the Minister of Power, Aliyu Abubakar, made this known when he visited the project site. Inspecting the progress of work on the project, Abubakar said three of the turbines have been installed. He said each of the turbines already installed can generate 175 megawatts of electricity.…

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