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FG generates N393bn revenue from power sector

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By Abiodun Okunloye

NESI revenue in the first half of 2022 is the highest in the past eight years.

During the 11th edition of the 2019-2023 Scorecard for President Muhammadu Buhari – led administration, which was organized by the Federal Ministry of Information and Culture in Abuja, the federal government announced that it profited a sum of N393 billion in the Nigeria Electricity Supply Industry (NESI) during the 2022 first half (H1), which this figure is the highest it has been in the past eight years. Minister of Power Abubakar Aliyu has revealed that the industry achieved a higher historical level in compilations in the most recent billing period of October, totaling N74 billion.

The minister explained that all of this was accomplished while keeping people with lower incomes (who do not every time get enough power supply) safe by maintaining subsidies for the reduced tax bands and enabling those with an adequate power supply to generally pay the higher costs. Also, over 80 percent of the market’s tariff deficits have been eliminated, while they are well on the path toward developing a sustainable market that is capable of supporting itself.

The sector metering program generates thousands of jobs for Nigerians.

Speaking about other developments for the sector, Aliyu stated that the National Mass Metering Program had been a huge accomplishment, with 1 million meters being launched in the initial phase of the program. He shared the news that preparations are being finalized for a supplemental 6 million meters to be installed as part of the project’s second and third phases, both of which are scheduled to begin in the first and the second quarter of 2023, respectively.

In addition, he stated that the first phase was responsible for the creation of 10,000 jobs in the areas of installation as well as assembly, while the second phase would be responsible for the creation of over 20,000 additional jobs. Both of the phases have financially sound structures in place. As part of the heritage that the Buhari government will leave behind, they are also helping to build a Meter Service Fund, which will make it possible for consistent metering in the NESI, he added.

Buhari administration has contributed significantly to the sector.

Further elaborating on Buhari’s accomplishments in the sector, he stated that a total of 105 Power Transformer projects had been executed between 2015 and 2022, adding 6,216MVA to the power system, with 73 of the distribution transformers being installed in power stations throughout the nation. Aliyu also claimed that Nigerians would obtain an extra 4,000MW of power generation from the Buhari administration. In addition, he said they will finish and launch the 700MW Zungeru Hydro Power Plant in the 2023 first quarter.

Among the many, the 240 MW Afam III as well as the 300 MW Okpai Phase II will go live. They will relinquish an implemented capacity of nearly 22,000MW and put the country on a steady course toward a target of 10,000MW of supplied energy (currently, they are at 8,000MW, with 5,000MW on-grid and 3,000MW+ of production captive off-grid). He went on to say that they have comprehensive programs in movement, with amenities and investment opportunities secured totaling over $3 billion, to close the huge disparity between the transmission capacity and delivered energy.

Over the years, the sector recorded a good health status.

As regards the sector status, Aliyu said an evaluation of Nigeria’s supply of electricity reveals that it is a lot healthier than it was under the previous administrations. Stable power requires a healthy industry. Their task is too big for the federal government alone because investors only invest in healthy, performing sectors. He further said the objective analysis would prove that power industry economics are getting the point. He added that liquidity reforms drove the power sector’s 78 Year-on-Year growth in Q2 2021, contributing to the Nigerian economy’s record 5 percent growth rate, according to the Nigerian Bureau of Statistics (NBS).


Related Link

NESI: Website

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