CurrentReport Blog The Federal Government of Nigeria is set to release $800 million under the Presidential Power Initiative (PPI) to boost the country’s power infrastructure. The Minister of Power, Chief Adebayo Adelabu, announced the funds would be allocated for constructing substations and distribution lines across various regions.
During a facility tour at TBEA Southern Power Transmission and Distribution Industry in Beijing, China, Chief Adelabu revealed that the funds would be split equally between Lot 2 and Lot 3 of the PPI. Lot 2, with a budget of $400 million, will cover the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs) franchise areas. Similarly, Lot 3, also allocated $400 million, will focus on the Abuja, Kaduna, Jos, and Kano DISCOs franchise areas.
The Minister highlighted that the initiative is part of the federal government’s commitment to improving Nigeria’s power sector, particularly in transmission and distribution. This development comes as Nigeria strives to overcome longstanding challenges in the power sector, including outdated and fragile infrastructure that has hindered industrial growth and led to an unreliable supply of electricity.
Adelabu also pointed out that on August 30, the nation’s power generation peaked at 5,170 megawatts. However, this output had to be reduced by 1,400 megawatts due to the inability of the Distribution Companies (DisCos) to absorb the supply. Despite these setbacks, the government aims to increase power generation to 6,000 megawatts by the end of the year, with a long-term goal of reaching 30 gigawatts by 2030, 30% of which is expected to come from renewable energy sources.
The Minister emphasized the need for a modernized national grid, which is currently inadequate to support the government’s vision for the power sector. To address this, plans are underway for the construction of a Western and Eastern super grid, a project that has already received significant presidential support and is nearing final approval.
TBEA, a global power company with a presence in over 100 countries, expressed its commitment to supporting Nigeria’s power sector transformation. The company is already involved in the Omotosho power plant in Ondo State and has shown interest in participating in the construction of the proposed super grid.
This initiative is part of the broader efforts by President Bola Ahmed Tinubu’s administration to revitalize the power sector, build investor confidence, and provide reliable electricity to households, industries, and businesses across Nigeria.
