The Minister of Power, Mr Adebayo Adelabu, has said that the Federal Government needs 10 billion dollars annually in the next ten years to revive the country’s power sector and overcome the liquidity hurdles.
Speaking at a one-day investigative hearing organized by the Senate Committee on Power in Abuja, Minister Adelabu emphasized the necessity of an annual investment of $10 billion over the next decade to revive the nation’s power sector and overcome its liquidity challenges.
Adelabu pointed out that while such an investment was imperative for the sector’s stability and growth, it was not feasible given the current size of the country’s budget. He noted the importance of attracting investors and lenders to the sector to facilitate its revival, stressing the need for commercial pricing to make it attractive for investment.
One of the major obstacles facing the power sector, according to Adelabu, is the absence of liquidity exacerbated by the subsidized tariff regime. He noted that the inability of the government to pay the outstanding N2.9 trillion subsidy was due to limited resources, necessitating measures to sustain the sector.
To address these challenges and improve power supply, the government is investing in various projects, including hydroelectric power plants such as the 700 megawatts Zungeru and the 40 megawatts Kashimbila projects. Additionally, investments are ongoing in 26 small hydropower dams across the country to boost electricity production.
However, members of the Senate Committee expressed concerns over the inefficiencies in the power sector, with Senator Ola Ashiru highlighting the burden placed on Nigerians due to these inefficiencies. He emphasized the need to protect vulnerable Nigerians and suggested a reconsideration of the recent tariff increase.
