Nigeria: Country Spends $13 Billion Yearly on Generators

On October 31st, 2010, posted in: News, newsletter, Nov 2010 News by

Tags:

Mohammed S. Shehu

President Goodluck Jonathan said that due to the perennial epileptic power supply, Nigerians expends about $13 billion every year to source power from diesel generators even when the country requires only about $10 billion per year in investment to develop its generation, distribution and transmission capacities.

Jonathan noted that over dependence on generators as the main source of generating power has added more than 40 per cent to the cost of goods and services in the country, noting that even at this high rate of expenses, less than half of the citizens have access to electricity.

Jonathan stated this recently while speaking at the opening ceremony of a two-day Presidential Retreat for Power Investors at the Banquet Hall of the Presidential Villa, Abuja.

He said “We are determined to make the power sector reform fair to all concerned. In this reform there will be no losers” adding that from next year, the Federal Government would cease investment in power generation and distribution.

Minister of State for Power Nuhu Somo Wya said a total amount of $10billion investment per year was needed throughout the power supply chain in order to achieve “the relatively modest target capacity of 40,000mw by 2020.”

Special Adviser on Power Prof Barth Nnaji said the Central Bank of Nigeria (CBN) has established N300bn fund that could be accessed by prospective investors in the power sector.

He said with the unbundling of Power Holding Company of Nigeria (PHCN), establishment of Nigerian Electricity Regulatory Commission (NERC) and the launch of the Roadmap for Power Sector Reform, the coast is now clear for private sector involvement.

Source: dailytrust.com (Nigeria)      Image: germanyandafrica.diplo.de

Share
No Responses to “Nigeria: Country Spends $13 Billion Yearly on Generators”

Leave a Reply

UA-23835279-1