👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada


Power firms need $2.5bn new capital – FG

Nigeria’s electricity sector is grappling with a severe capital shortfall, estimated at around N2 trillion ($2.5 billion), highlighting the urgent need for new investments to revitalize an industry crucial for the country’s 200 million residents.NYSC Portal

According to Olu Verheijen, an adviser to President Bola Tinubu on energy, the power companies in Nigeria are over-leveraged and under-capitalized, severely limiting their ability to distribute electricity efficiently to households. This information was reported by Bloomberg.JAMB Portal

👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

The country’s power generation fluctuates between 3,500MW and 4,500MW, which is significantly inadequate for its vast population spread across 36 states and the Federal Capital Territory. For instance, on a given day, the national grid was only able to generate 4,582.49MW.

Read Other News:

This shortfall in power generation is compounded by issues such as inadequate pricing, inconsistent revenue collection, and a deteriorating national grid. Consequently, many residents resort to using personal generators, often leading to noise pollution and additional expenses.InformationGuideNigeria

The situation in Lagos, Nigeria’s most populous city, starkly illustrates the issue. The city, with a population of around 25 million, receives only about 1,000MW from the grid. This figure is starkly contrasted with cities like Shanghai, which, with a similar population size, can supply over 30,000MW at peak demand.

Verheijen suggests that policy reorganization and recapitalization are necessary steps, along with bringing in new partners who can provide fresh capital. However, specific details or timelines for these plans were not provided.

One of the key strategies for sector revitalization includes making electricity tariffs cost-reflective, which would enhance the liquidity and viability of the power sector. Since the privatization of generation and distribution in 2013, electricity tariffs in Nigeria have been regulated by the Nigeria Electricity Regulatory Commission, a government-controlled entity. The current tariff structure does not allow power firms to recover the cost of electricity distribution, leading to the government subsidizing the difference.JAMB Result

However, due to the weakening of the naira and rising inflation, energy subsidies are projected to increase significantly, potentially reaching N1.6 trillion this year, up from N600 billion in 2023.

Check JAMB Result

👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

Check and Confirm: How much is Dollar to Naira

📢 We are hiring writers!

Article Writing Jobs - We are hiring good freelance writers - Click here to apply

Copyright Warning!

Contents on this website may not be republished, reproduced, or redistributed either in whole or in part without due permission or acknowledgment. . Proper acknowledgment includes, but not limited to (a) LINK BACK TO THE ARTICLE in the case of re-publication on online media, (b) Proper referencing in the case of usage in research, magazine, brochure, or academic purposes,. . All contents are protected by the Digital Millennium Copyright Act 1996 (DMCA). . . The images, except where otherwise indicated, are taken directly from the web, if some images were inserted by mistake violating the copyright, please contact the administrator for immediate removal.
. We publish all content with good intentions. If you own this content & believe your copyright was violated or infringed, please contact us  for immediate removal.

Emediong Silver

Emediong Ekpe is a graduate of English. A professional Sports journalist/analyst, and a spoken word artist. He is passionate about decimating information and putting smiles on people's faces via news writing. Whatapp: 08088735884

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

It looks like you're using an ad blocker!

This website InfoGuideNigeria.com is maintained by the advertising revenue and we noticed you have ad-blocking enabled. Please disable Ad-Blocker