…FG to invest $3 billion in power sector
The Special Adviser to President Muhammadu Buhari on Infrastructure, Mr Ahmed Zakari, has said, the Federal Government (FG) plans to end subsidy payments in the sector by December 2021. He made this known at a webinar organised by the Abuja Chamber of Commerce and Industry (AICC).
Mr Zakari blamed the high cost of electricity tariffs on Generation Companies’ inability (GenCos) to meet the energy demand.
He said, “We plan to eliminate subsidy by the end of the year. People will say if you eliminate subsidies, you will have poor people pay more. But we argue that the only reason the power prices in Nigeria are high is that we don’t generate enough.”
Speaking on the collection efficiency of the Distribution Companies (DisCos), Mr Zakari stated that, due to the efforts of the FG, the sector had witnessed an improvement in revenue collection and investments. The recent approval of $500 million funding by the World Bank for the rehabilitation of the sector, according to Mr. Zakari, is an acknowledgement of the FG’s efforts in the sector.
Mr Zakari added that the FG plans to spend at least $3 billion in investments in the sector. This investment will improve the transmission wheeling capacity increasing it to at least 7000MW.
(Electricity Hub)
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