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Power Sector To Receive $20bn As FG Targets 20,000 Megawatts By 2026

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1 year ago

September 20, 2023

In the last five days, reports says that the national grid has collapsed twice, when power generation crashed from a peak of 3,594.60 megawatts to an alarming low of 42.7MW

This according to the Minister of Power, Adebayo Adelabu has led to the $20bn investment, which in turn will be used to purchase new power plants and transmission lines while targeting 20,000 megawatts by 2026.

Adelabu disclosed this at the ongoing Nigeria Energy Summit in Lagos.

He said, “It is enough just to generate power, but the most important thing is also to be able to get at most 90 per cent of the power to consumers that would pay for it.

“The Nigerian government is actively advancing the power sector through various measures. With a $20 billion investment plan, new power plants and transmission lines are set to be established to boost power generation and grid stability.

“That is why my tenure would focus on growing power generation to 20, 000 megawatts in the next three years. But the target would be impossible without investments from all investors across the sector’s value chain. From the utilities to transmission and generation companies; everyone must be ready to invest to achieve the target.”

Although 20,000MW is the immediate target, the Minister, revealed that the mid and long-term power generation targets are 30,000MW by 2030, and 60,000MW by 2060.

Adelabu while urging investors to seize the opportunity revealed that the ministry has been able to identify an eight million metering gap that must be closed to ensure effective power generation and distribution.

He said, “The Nigerian electricity market is huge. So, investors must be ready for mid and long-term investments before expecting to make profits. The industry needs liquidity and this can be attained through equity and debt capital.”

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