The Minister of Power, Chief Adebayo Adelabu, at the weekend disclosed that Nigeria was finalising a $2.3 billion funding arrangement to revamp the country?s electricity transmission lines and supply the country with reliable power under the Presidential Power Initiative (PPI), otherwise called the Siemens deal.

The government further called on member states of the European Union (EU) to continue to provide technical and financial support to Nigeria in the power sector, which is critical to the optimal performance of the economy.

Adelabu, who spoke in Abuja when he received the EU Ambassador to Nigeria, Gautier Mignot, also lamented the potential impact of declining international oil prices on the nation?s economy, but stated that despite the challenges, President Bola Tinubu was taking the issue of revamping the power sector very seriously.

However, the minister stated that there had been a lot of improvement in the sector since Tinubu took over the reins of governance in Nigeria, having initiated reforms that are yielding positive results and transforming the sector, a statement by his spokesman, Bolaji Tunji, noted.

He noted the Investment in the non-grid supply to the rural and semi-urban parts of the country, exploring solar energy and hydro power supply, facilitated by the Electricity Act of 2023.

?The second intervention with regard to the transmission is the Presidential Power Initiative (PPI), and you will recognise it better when I say Siemens Project. So we are actually securing the finance of close to $2.3 billion to ensure that we revamp or transform our transmission segments.

?And the government of Germany has been very instrumental to ensure this works. Siemens is handling lots of the critical transmission projects there. We also have some reputable Chinese firms too, that are doing some distribution projects, based on each company?s specialty and track records. That is working well.

?We have almost completed the pilot phase of that project, which involved importation, installation, commissioning, and energisation of 10 power transformers across the country and another set of 10 mobile substations.

?We have installed almost 90 per cent of this and they are working. And that has improved transmission capacity by over 700 megawatts, which is the result of what we are seeing now in terms of relative stability in the transmission grid,? Adelabu added.

According to him, with an average of 5,000mw to 8,000mw, it?s not by accident that the administration recorded two major milestones in the power sector in daily power consumption, with achievement of over 20,000 kilowatt hours and transmission as well as distribution of the highest energy volume of 5,801.63mw.

?We have also transmitted and distributed the highest energy in the volume of 5,801.63, which has broken the previous record, achieved in 2021. And lastly, we have achieved a valuable generation capacity of 6,003 megawatts in Nigeria,? he said.

Adelabu emphasised the need for more assistance from the partners, but stated that there are plenty of areas of support where they are required, especially financial support ?as the evolving economic landscape is not so favourable to us in this part of the world?.

?Just let?s look at the recent disruptions of the reciprocal tariffs from the US and a lot of other things that are coming. And look at the impact on the crude oil international price from $80 down to $64, and still going down further.

?That?s a lot of risk on our revenues in Africa, especially in Nigeria, where we rely so much on crude oil for foreign exchange. Over 90 per cent of our foreign revenue is from crude oil. Non-oil exports are still very low here. So you can see the disruptions are causing even to our 2025 annual budgets.

?We have used $75 to one barrel as the benchmark price for the budget. We have used 2 million barrels per day. And we are still at 1.7 million. You can see that gap, that hole is going to lead to a deficit. The major impact is that a lot of our quite laudable infrastructure transformation projects will be affected.

?There will not be enough money for capital projects. After you have paid salaries, you have paid pensions, you have made statutory reductions, have service debt. In fact, service debt will be a problem. And nobody wants to be insolvent as a sovereign. Financing is putting a lot of pressure on us.

?So, I want the Western world to continue to fund us in friendly conditions. Friendly terms that will enable us to want to pay back as soon as we are able to get out of this quagmire. And again, it will help us to de-risk the investments in the power sector.

?A lot of the investors run away from investment in the power sector, whether it?s grid or renewable. But when they see huge investment coming in from the multilateral agencies, international development organisations, even the government itself, they are encouraged to come in,? the minister stated.

The minister noted the enormous financial support that the power sector had received from EU nations, such as Germany, France and many others, expressing the hope that the meeting would ensure that both parties benefit from bilateral and multilateral relationships.

?We have a history that we are not proud of. Over 60 years of electricity in Nigeria and we are still at this level of epileptic supply to households, businesses and industries. In fact, we got electricity before some European countries. So those that got electricity after us have stabilised their supply.

?They have made their supply reliable and they are benefiting from it through visible economic growth and industrial development. And today, we are still import-dependent on the majority of the things that we use in Nigeria, not because we don?t have the raw materials to produce these things, but because of the lack of reliability and functionality of our power sector?, the minister said.

In his remarks, the EU envoy, Mignot, expressed the desire of the EU to continue to work and collaborate with Nigeria, especially in the power sector.

?For us, the energy transition aspect is very important. At the same time, we?re very much aware that Nigeria has to build on the sets with oil and gas, and gas especially. We have also now the new important financial stakeholder arriving, which is the European Bank for Reconstruction and Development (EBRD).

?And you know that they are extending their mandate to six sub-Saharan African countries, including Nigeria. And Nigeria is becoming a shareholder of the EBRD, because it?s not only an EU bank.

?We have the majority of member states but there are many other stakeholders and beneficiary countries are shareholders. So it will also be a new source of financing. They will have an office In Lagos and they are more focused towards the private sector. So it?s a new asset,? he said.

Meanwhile, Adelabu has assured of the commitment of the federal government in transforming the power sector and making it responsive to the yearnings and aspirations of the populace in the provision of effective, affordable, available and stable electricity to all Nigerians.

Adelabu restated this at the 2nd Edition of the EnergyTimes newspaper award, where he was honoured with the power sector personality of the year award by the organisers for his contribution to the power sector within the short time that he has assumed office as the Minister.

Represented at the event by his Special Adviser on Media and Strategic Communications, Tunji, Adelabu said the award reminded him of the immense responsibility ?we bear in transforming Nigeria?s energy landscape?.

?Electricity is the lifeblood of any economy?the catalyst for industrialisation, job creation, and socio-economic development. Yet, we are acutely aware of the gaps that persist: from grid inefficiencies to the need for diversified energy sources, including renewables,? he stated. (AriseNews TV)

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