Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, expressed his dissatisfaction with the alarming condition of Nigerian power sector during his speech on December 12, 2023. He revealed that approximately sixty percent of Nigerians are still deprived of electricity supply, leaving only a fortunate forty percent with access to power throughout the entire country. Expressing dismay at the state of the country’s power sector, the minister criticized its shortcomings.
The revelation was made during an address at the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan in Abuja. The minister emphasized that the government finds the current situation to be completely unacceptable. Edun’s disappointment is palpable as he voices his concerns about the power sector’s privatization that has failed to deliver the intended outcomes. Industry participants have fallen short of expectations in recent years. Consequently, Edun asserts that the government is left with no alternative but to depend on renewable energy.
This affects industrialization & manufacturing development.
Furthermore, this shift towards greener and cleaner power is deemed crucial for fostering economic growth. His assertion is that the current administration intends to utilize power as one of its cornerstone focal points to propel swift and consistent economic progression. Tinubu’s agenda revolves around the fundamental concept of power. The absence of electricity impedes both industrialization and manufacturing development. Evidently, it is deemed unacceptable by Mr. President that a significant portion, amounting to sixty percent of Nigerians, lack access to electricity.
One decade ago witnessed a privatization endeavour that fell short of expectations and failed to meet the desired outcomes. Consequently, the outcome proved to be unsatisfactory. Hence, it holds immense significance to include stakeholders in pertinent discussions and remedies. Beyond the various pricing alternatives available for electricity, a plethora of opportunities related to renewable energy have emerged. However, it is crucial to acknowledge that the administration’s focus is not solely on adopting environmentally friendly practices. What it truly seek is an effective resolution that can address the country’s power needs while simultaneously driving swift economic growth.
Public sector’s contribution to the $100b annual investment would be 14%.
According to him, safeguarding the environment is the duty assigned to all parties involved. However, more significantly, they are obligated to establish the foundation that enables Nigerian economy to thrive and expand. During his speech, Senator Abubakar Atiku Bagudu, the Minister of Budget and National Planning, highlighted that the public sector’s contribution to the $100 billion annual investment in power would only amount to 14 percent. Nigeria electricity needs pose a significant challenge in fulfilling the country’s power investment as part of its grand scheme, Agenda 2050. Merely 14% of the colossal $100 billion per year investment is anticipated to derive from public sources.
Hence, this necessitates substantial efforts on the country’s part to ensure the fulfilment of Nigeria’s energy requirements. The Ministry of Budget and National Planning has taken on a commendable task by spearheading the development of the National Integrated Infrastructure Master plan, which holds immense importance in the realm of power elements. He mentioned that during the past week, a notable aspect of the administration’s activities within the ecosystem involved the President’s engagement with global investors and development allies, he expressed.
A significant improvement is imperative and necessary.
Bagudu divulged additional information, stating that within the framework of a worldwide gateway fund amounting to $300 billion, Africa will be allocated $150 billion. However, there are even plans to fully utilize this substantial sum before the year 2030 arrives. During the commencement of a public hearing on the Electric Power Sector Reform Act (Amendment) Bill, Rep. Femi Gbajabiamila, the esteemed Speaker of the House of Representatives, expressed his dissatisfaction with the current state of the Nigerian electric power sector. He firmly believes that a significant improvement is imperative and necessary for its overall enhancement.
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