Abuja, Nigeria – The Federal Government of Nigeria has announced plans to allocate $800 million for the construction of power substations and distribution lines as part of the Presidential Power Initiative.
According to a statement released by Adebayo Adelabu, the Minister of Power on Sunday, the $800 million will be divided equally, with $400 million each designated for the construction of power substations in Lot 2 and Lot 3 of the initiative.
Lot 2 includes the franchise areas of the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs), while Lot 3 covers the Abuja, Kaduna, Jos, and Kano DISCOs.
The initiative aims to address the fragile transmission and distribution infrastructure, which has hindered industrial growth and left many industries reliant on self-generated power.
Adelabu highlighted the government’s commitment to transforming the power sector, with a goal of achieving 6,000 megawatts by the end of the year and 30 gigawatts by 2030, with 30% from renewable energy sources.
The Minister also emphasized the need for a super grid to support the vision, stating that the existing national grid cannot adequately support the planned expansion.
In his interactions with the management of TBEA, the Minister reiterated the government’s commitment to working with world-class organizations to realize President Bola Tinubu’s vision for the power sector, which includes significant improvements in transmission and distribution as well as the development of renewable energy sources.
TBEA assures partnership with FG on power substations construction
TBEA, a Chinese company, has expressed willingness to collaborate with the Nigerian government to achieve the power sector goals.
They reaffirmed their commitment to supporting Nigeria’s journey toward 6 gigawatts of power by December 2024 and the long-term goal of 30 gigawatts by 2030.
Key Highlights:
- $800 million investment in substations and distribution lines
- Lot 2 covers Benin, Port Harcourt, and Enugu DISCOs
- Lot 3 covers Abuja, Kaduna, Jos, and Kano DISCOs
- Goal of achieving 6,000 megawatts by the end of the year
- Target of 30 gigawatts by 2030, with 30% from renewable energy sources
- Need for a super grid to support the vision
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