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Power

FG Approves ₦4trn Debt Refinancing Plan for Power Sector

by Nelson Ugwuagbo September 30, 2025

written by Nelson Ugwuagbo

The Federal Government has approved a ₦4 trillion debt refinancing plan to settle legacy debts owed to 27 power generation companies (GenCos) for electricity supplied between 2015 and 2023.

The intervention is designed to restore liquidity in the power sector, boost investor confidence, and stabilise electricity supply across the country.

The debts, estimated at ₦4 trillion, arose from unpaid invoices by the Nigeria Bulk Electricity Trading Company (NBET). The backlog triggered a chain reaction of withheld gas supply, reduced generation capacity, and weak performance by distribution companies (DisCos).

Under the refinancing arrangement, the government will restructure and clear verified debts through a mix of bonds, treasury instruments, and phased cash payments.

Officials say the plan will provide relief to GenCos and gas suppliers, strengthen balance sheets, and attract fresh capital into the sector. It will also enable prompt payments to gas suppliers, improved plant maintenance, and expanded generation capacity, ultimately reducing outages and supporting economic productivity.

The Ministry of Power and the Debt Management Office (DMO) will manage the disbursements, with strict verification and auditing measures in place. Periodic updates will be published to ensure transparency and prevent a repeat of debt accumulation.

September 30, 2025 0 comments

Business

FG Signs $328M Agreement to boost Nigeria’s electricity supply

by Folarin Kehinde April 9, 2025

written by Folarin Kehinde

The Federal Government of Nigeria (FGN) Power Company has announced the signing of a major Engineering, Procurement, Construction and Financing (EPC&F) contract with China Machinery Engineering Company (CMEC) group worth US$328,818,916.99 to boost power supply across Nigeria.

Minister of Power, Chief Adebayo Adelabu while speaking in Abuja on Wednesday at the signing ceremony stated that the project will ensure the rehabilitation and extensive construction of 330 kV and 132 kV transmission lines under Phase 1 of the Presidential Power Initiative (PPI) while preventing stranded capacity in the grid.

Adebayo explained that the project
with a load capacity of 7,140
megawatts will act as the arteries that carry the increased power generated through Nigeria’s midstream transmission projects directly to the homes, businesses, and industries adding that the project is deliberately designed to seamlessly complement the ongoing midstream transmission enhancements.

“By focusing on upgrading and expanding our transmission network, we are directly addressing a key bottleneck in the power sector value chain. This will translate to a significant improvement in electricity reliability and accessibility for millions of Nigerians fostering economic growth, creating jobs, and enhancing the quality of life for our citizens.”.

Meanwhile, Adelabu noted that the government is aware of the current power supply challenges but is working tirelessly to address them hence the contract signing but emphasized that Nigerians should join hands in protecting the nation’s critical assets while they continue working towards providing affordable and reliable power supply to Nigerians.

“This project, I also want to reiterate that it will involve a lot of installation of expensive wire lines, expensive substations that are seen as national, critical national assets, we urge Nigerians to join hands in protecting this because it’s going to be executed with taxpayers’ money. Even if it is through finance, the repayment of the financing will be from
taxpayers’ money.

“If we destroy our transmission or distribution assets, we are destroying our own personal assets. So this asset must be guarded and protected generously for us to have unaltered and undisturbed regular power supply to our people.”. he added.

Managing Director/Chief Executive Officer, FGN Power Company, Kenny Anuwe on his part stated that the signing signifies a critical and concrete step towards
addressing the power infrastructure challenges of Nigeria adding that the expansion and upgrade of Nigeria’s transmission infrastructure are crucial for effectively wielding the incremental power that is generated from the work that Siemens Energy does.

Anuwe noted that having recognized that a robust and reliable transmission network is the backbone of a stable power
sector, he stressed that the partnership with CMEC is a strategic move to strengthen that backbone and to
ensure that the investments being made in generation can translate into tangible benefits for the Nigerian populace.

“We are particularly delighted to partner with CMEC on this transformative project.
The global reputation for engineering excellence, project execution capabilities, and commitment to quality are well established both in Nigeria and elsewhere. We are confident that this expertise will be invaluable in delivering this crucial infrastructure efficiently at the highest standards.”.

“Today, we are forging a power alliance to meet Nigeria’s growing energy and infrastructure needs.This contract is not just a procedural step. It is a reaffirmation of our commitment to transparency, accountability, and delivering on the promises made to Nigerians. We are
determined to ensure that this project is executed diligently, efficiently, and with the utmostattention to quality and timelines.”. he added.

Responding, Vice-President, CMEC, Li Xiaoyu expressed optimism about the contract and the timely execution of the project for the benefits of Nigerians.

April 9, 2025 0 comments

Headlines

Power Generation: We will copy Egypt’s model – FG

by Folarin Kehinde March 24, 2025

written by Folarin Kehinde

The Federal Government says it will learn power generation and transmission from Egypt which it described as a role model in the sector.

The government also has reaffirmed its commitment to rural development through improved electricity access.

The Minister of Power, Adebayo Adelabu, disclosed this during a recent meeting in Abuja with the Egyptian Ambassador to Nigeria, Mohammed Fouad.

A statement by Adelabu’s spokesperson, Bolaji Tunji, said on Sunday that the meeting centered on strengthening bilateral cooperation in energy expansion, with a focus on renewable energy and rural electrification.

Adelabu commended Egypt’s achievements in the energy sector, describing the country as a role model in energy infrastructure development.

He expressed Nigeria’s interest in learning from Egypt’s experience in energy generation, transmission, and distribution, adding that the success in Egypt led to the engagements with Siemens with a view towards stabilising Nigeria’s power sector.

“Egypt has made remarkable strides in energy transformation, and we are eager to collaborate and learn from your expertise. Our goal is to ensure reliable, stable, and affordable energy access for all Nigerians,” he added.

Adelabu highlighted Nigeria’s efforts to connect remote rural areas to power through renewable energy initiatives, citing the economic challenges of extending the national grid to these regions.

“Many rural areas cannot be connected to the grid due to economic constraints, but we cannot neglect them. Through our renewable energy programme, we are bridging this gap. We have secured significant investments, including $750m from the World Bank’s DARES project and an additional $190m from the Japan International Cooperation Agency to support this initiative,” Adelabu stated.

He emphasised Nigeria’s abundant renewable energy resources, including solar, wind, and hydroelectric potential, expressing the government’s determination to harness these resources for sustainable energy access.

Speaking, Fouad expressed Egypt’s enthusiasm for collaborating with Nigeria, particularly in closing the metering gap and sharing best practices in energy access.

He emphasised the shared goals and mutual benefits of strengthening bilateral ties between the two nations.

“Nigeria and Egypt have much in common, and there is immense potential for collaboration in the energy sector. We are committed to working together to achieve sustainable energy solutions for both countries,” Fouad said.

March 24, 2025 0 comments

Headlines

Outage Hits Parts Of Presidential Villa, Others As Vandals Steal Power Cable

by Folarin Kehinde January 17, 2025

written by Folarin Kehinde

Power supply to some parts of the Presidential Villa, Maitama, Wuse, Jabi, Lifecamp, Asokoro, Utako, and Mabushi have been disrupted.

This followed the vandalism of the 132kV transmission line and the carting away of underground cable supplying bulk electricity to the Central Area transmission substation in Katampe. The vandals also carted away a 40-metre 1x500mm XLPE conductor.

“Consequently, areas experiencing power outage include Maitama, Wuse, Jabi, Life Camp, Asokoro, Utako, Mabushi, and parts of Presidential Villa,” the Transmission Company of Nigeria (TCN) General Manager of Public Affairs, Ndidi Mbah, said in a statement on Friday.

Mbah said the incident impacted eight distribution feeders supplying the Central Area, disrupting over 60 per cent of Abuja’s power supply.

“The vandalism of this critical infrastructure is suspected to have occurred near the Menillum Park axis of Abuja,” Mbah noted, explaining that the perpetrators stole 40 meters of 1x500mm XLPE conductor from the two 132kV transmission lines.

But she said the TCN had already dispatched a team of engineers to restore power to the affected areas promptly.

Mbah appealed to residents in the affected areas to remain patient while efforts to repair the damaged cables are underway.

The TCN GM expressed concern over the ongoing issue of cable vandalism, which continues to disrupt power delivery across the country.

She also called on Nigerians to stay vigilant and protect transmission equipment to prevent further incidents of vandalism.

January 17, 2025 0 comments

Headlines

Nigeria’s power generation hits 5,313MW, first time in 3 years

by Folarin Kehinde September 4, 2024

written by Folarin Kehinde

Nigeria’s power generation rose to a three-year high of 5,313mw, the Minister of Power, Mr Adebayo Adelabu has said.

He made this known in a statement issued by his Special Adviser on Strategic Communication and Media Relations, Mr Bolaji Tunji.

According to the statement, the Minister urged Electricity Distribution Companies (DisCos) to take more energy for distribution in order to prevent a grid collapse.

”When power is produced and not picked by the DisCos, it could lead to grid collapse as frequency drops..

”Efforts will be made to encourage industries to purchase bulk energy,” he said.

Recall that in May this year, the federal government pledged to generate 6,000 megawatts of electricity before the end of 2024.

During his ministerial address in Abuja while presenting achievements of his ministry since President Bola Tinubu assumed office, Adelabu, said the country’s power generation rose to 5,000MW on May 3.

Adelabu vowed that power generation in Nigeria would hit 6,000MW before the end of this year, going by the improvements in the sector in 2023.

September 4, 2024 0 comments

Headlines

FG working on fixing infrastructure across power sector value — Power Minister

by Folarin Kehinde August 27, 2024

written by Folarin Kehinde

Calls On Youths’ Support For administration’s Policies And Programmes

Nigerian youths have been called upon to support the policies and programmes of the President Bola Ahmed Tinubu-led administration as the reforms and transformation being undertaken by the government are designed to make life more meaningful for Nigerians.
Minister of Power, Chief Adebayo Adelabu, particularly charged the youths of the ruling All Progressives Congress (APC) to rise up in defence of the government at all times as the party owns the government of the day.

The Minister spoke on Monday, when he received the National Youth Leader of the APC, Dr. Dayo Israel, who visited him in his office in Abuja, to brief him on the proposed Youth Summit of the party that will hold from September 3-5 in Abuja.

The Minister took time to brief the Youth Leader, who was accompanied by a few others, about the policies and programmes of the government and used the opportunity to educate them about what President Tinubu is doing to get the country out of its present predicament.

According to the Minister, Nigeria has suffered from bad governance over the years and efforts to change that narrative will certainly not be an easy one, but it must be done, in order for Nigeria to advance in development like other developed nations of the world.

“It is unfortunate that Nigeria has experienced bad governance over the years. Nigeria has gradually gone down, and the efforts being made by President Tinubu is the right way for us to get out of these challenges.

“Parts of the complain is that cost of governance is high . But our constitution provides for a bicameral legislature with 109 Senators and 360 House of Representatives members. This is very expensive for the country to run and President Tinubu can not with a pronouncement, put a stop to this. If there would be changes, it must come with constitutional amendment”.

He explains further: “ the Constitution mandates the President to appoint a minister from each of the 36 states of the federation and the FCT. It also mandates the President to appoint a minister from each of the six geo-political zones of the country. If the President refuses to do this, there will be protests that he has marginalised a state or zone.

“So, when we had the recent protests by youths on ‘endbadgovernance’, the youths should try to understand that the Constitution we have makes governance expensive in Nigeria. So, this constitutional issue must be addressed so as to curb wastages in government business.

The President cannot just wake up and make pronouncements on these fundamental constitutional provisions”, the minister said.

He called the youths to support the efforts of President Tinubu in ensuring that past mistakes are corrected through ongoing reforms and policies.

“Reforms and transformations that will usher Nigeria to prosperity will not come with ease, considering the level of the rot in the system. We must endure and understand with the government. This government is changing the narratives and is determined to leave a better Nigeria to all of us.

“As youths of the party, you must rise to the occasion of defending the government, defend the position of government because the party owns the government of the day.

“The President believes so much in the youths and that is why you can see that his cabinet is dominated by the youths. You can also see that many of the appointments he is making are youth-based.

“The policies and programmes of the government, particularly the removal of the petrol subsidy has increased allocations to state governments through the governors, so as youths of the party, you also owe it a duty to inform the youths protesting that the governors of their states are receiving double and in some cases triple of the allocations they used to receive”, he said.

He also outlined the measures that he has taken to transform the power ministry in the one year that he resumed. He said President Tinubu has provided the needed support to make sure the power sector gets back the confidence of Nigerians, once again.

“President Tinubu wants to use the power sector to drive the reforms in other sectors of the economy. If you recall in his speech to Nigerians on January 1, he spoke extensively about that sector. Power is one of the sensitive campaign promises he made to Nigerians and he is determined to fulfil that promise.

The sector was almost jinxed before we came in but thank God that confidence is coming back now to the sector from the general public.

“Within one year that we came into office, we have been able to increase power generation from 4, 000 megawatts to 5,155 and have a target to move it to 6,000 megawatts by December this year. We are also working on fixing the infrastructure across the power sector value chain”, the Minister said.

He also disclosed that some of the institutions that cannot cope with the high cost of electricity such as the universities, teaching hospitals and small businesses, will enjoy the renewable energy initiative being driven by the Rural Electrification Agency (REA).

Speaking earlier, the National Youth Leader commended the Minister for the noticeable improvement in the supply of electricity to businesses and households in the country. He also invited the Minister to speak at the Ministerial town hall meeting at the Progressives Young leaders summit holding from September 3-5, 22024.The Youth leader said the summit was to give Nigerian youths the opportunity to contribute their voices to shaping the country in line with the renewed hope agenda of the administration.

August 27, 2024 0 comments

Headlines

Off Grid Options for Rural Electrification is Better for Nigeria’s Clean Energy Goals

by Folarin Kehinde July 26, 2022

written by Folarin Kehinde

Four hundred and thirty-eight rural electrification projects were completed by the Rural Electrification Agency (REA) in 2017 as contained in the 2017 budget. These projects are to ensure the provision of electricity in rural areas to improve access to electricity.

On one hand, the completed projects mean expanding the already burdened grid to accommodate additional load.

On the other hand, although it provided energy to the rural areas, the energy provided cannot be judged clean because of its source. At least 75% of the on-grid electrification projects in the country are thermal-powered.

Electrifying Rural Areas

The Rural Electrification Agency (REA) in its 2017 budget, made provision of power to rural areas through 471 projects approved by the government. To achieve this, the agency made provision for the construction of mini-grids and expansion of ‌ grids.

Data available shows that the agency completed 438 of the 471 projects proposed in 2017. This shows a 92.9% rural electrification project performance from the 2017 budget.

Most of the projects were ‌in the north-central region of the country. The region had 103 of the 117 electrification projects completed, as stated in the budget. In the south-south, 77 out of 85 projects were completed and in the north-west,76 of 79 projects were completed.

Measuring the regions based on most projects completed as proposed, the south-west, which has fewer projects, completed most of its projects. Out of 54 projects, 53 were completed, representing 98.12%. At the extreme end is the north-central with 88.03% completion rate. Other regions had a completion performance above 90%.

Increased Climate Change Pressure

While powering the rural areas with increased output in gigawatts, it detracts from the country’s clean energy progress. As the grids operated by the generation companies (GenCo) are mostly thermal power plants.

These projects are connected to the grid networks, which are mostly thermally powered.

At least 75% of the power supply generated in the country is thermally powered. For example, in 2020 27,324.33 gigawatts (GW) of thermal electricity were produced out of a total output of 35.720.27 GW. Likewise, in 2021, 28,045.9 GW out of 36,367.92 GW thermal-powered electricity was produced.

Details of energy generated in the country from January to June 2022 averaged 3328.4 megawatts (MW) daily.

It is estimated that a thermal electricity generation plant emits 450 grams of carbon per kilowatts (g/kw) of electricity produced. This means that in 2020 and 2021, 13.553 million tons and 13.912 million tons of carbon dioxide (CO2) were emitted from thermal plants.

Thus, at a daily average of 2496.3 MW of thermal electricity which is 75% of total electricity generated daily and an emission rate of 450 g/kw; 1238.263 million tons of CO2 are emitted daily from the thermal plants.

As thermal-powered electricity generation increases, so does the CO2 emissions. If Nigeria continues its rural electrification projects with thermal-powered energy, the odds against the country’s 2060 goal of zero emissions increases.

The Off-Grid Renewable Energy Option

Electrifying the rural areas using the off-grid option will not only provide clean, sustainable energy, it will also provide revenue to the government and save some cost.

It is estimated ‌that an off-grid electricity project to power 5 million homes will generate additional N7 billion tax revenue for the country annually. Also, powering the same number of rural households will save the country $10 million in import substitution annually.

Nigeria’s rural population is 90.033 million as at 2020 and just 24.6%, representing 22.148 million have access to electricity. At least 67.885 million people in rural areas don’t have access to electricity and with an average of five persons per household, an estimated 13.577 million households do not have access to electricity.

If these 13.577 million households are connected to off-grid electricity, it will generate at least N17.5 billion in tax annually and will save the country at least $25 million in import substitutes annually.

Implementation of the National Electrification Project (NEP) can leverage Nigeria’s 17 MW off-grid energy generation capacity, which will deliver benefits, beyond the proposed coverage, to the country.

The off-grid power generation has recorded success in South Africa, where it provided the most cost-effective rural electrification option. The project’s success in providing off-grid electricity was high as it considered businesses, population growth, and the corresponding load increase. And in the long run, generating revenue for the government.

Rethinking the electrification of rural areas using off-grid technologies will move Nigeria forward in the direction of its clean energy goals, provide energy to households and set the country on course for the attainment of SDGs 7 and 13.

Source: Dataphyte

July 26, 2022 0 comments