On Wednesday, the FG expressed its readiness to spend 150 million dollars on the rural electrification. Mr. Babatunde Fashola the minister power, works and housing made this statement in Abuja at a business forum on “financing opportunities in the Nigerian power sector” ADVERTISING inRead invented by Teads Fashola, the govt will use 44 electric meter for tertiary institutions and small hydro dams in the rural areas as anchors for the electrification programme.
Fashola said that the money will be deployed towards providing independent power plants to supply electricity to tertiary institutions and rural communities. He also said that 37 out of the 44 tertiary institutions audited for the project were universities why 7 were teaching hospitals. The minister said that the govt. would deploy 37 IPPs made up of 9 gas plants and 28 solar plants with a combined generation capacity of 120 megawatts to power all the universities. According to him, the 37 IPPs will replace 1,105 generators that were hitherto serving the institutions and generating 210 MW of inefficient and unclean energy. He said the amount would cover capital expenditure, operations and maintenance. On funding opportunities in the nation’s power, fashola emphasized on the need for funding and liquidity stability in the sector.
The minister said the Distribution Companies required funding for the supply of meters, advancing distribution equipment like transformers, ring mains units, feeders for DisCos and funding, especially in foreign exchange. For the GenCos, the minister said adequate liquidity was acquired to procure turbines, parts and accessories which were largely imported. The DisCos need a lot of operating capital to buy meters, to change transformers that are old, to extend access to their customers, to replace transformers and so on and so forth. “They need operational capital and they need it in mix of foreign exchange because some of the things they want to buy are not made in Nigeria and there are some made in Nigeria. Fashola said investment in the GenCos was also profitable, saying that when the market is settled and stabilized, the return would be awesome.
He also said that the Transmission Company of Nigeria would benefit from funding of its grid expansion programme if it could present a well analyzed prospect plan that would demonstrate investment needs and return potential. The minister said that solar, coal, and other energy suppliers required investment to finance acquisition of photovoltaic panels, heavy duty equipment and related machines not made in Nigeria. Babatunde Fashola said Nigeria Buck Electricity Trader ,a government owned company, was planning to raise a bond for investors to buy into it. On the funding opportunities in rural electrification, he said that there exists a list of endless possibilities and opportunities for investment in the nation’s power sector.
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