FG earmarks $1.6bn to improve transmission network

By Etuka Sunday

The Minister of Power, Prof. Chinedu Nebo yesterday disclosed that about $1.6 billion has been disbursed by the National Economic Council to improve power transmission network in the country.

Nebo who made the disclosure while playing host to the high powered delegation of the Bankers’ Forum in his office said the money would be sourced from the legacy assets of the National Integrated Power Projects (NIPP), that are currently being privatized by government.

According to him, additional 500 million dollars was procured from World Bank (WB), 150 million dollars from African Development Bank (AfDB) respectively to address the current transmission problem.

The Minister said Transmission is the life-wire in the electricity value chain, so much so that sooner than later Nigeria will attain a near acceptable capacity of 120% of power generation for transmission’s capability which ideally should be 150% capacity ahead of generation target for transmission.

He stressed that the Banking sector will continue to play a lead role in the power sector, just as he argued that Nigerians should create wealth and enjoy such, but if foreign interest are made to invest,

they would repatriate their profits abroad.

He tasked the Bankers to participate actively in the unfolding opportunities that have been thrown up in the power sector, saying that Banks should make loans available to those desirous of buying shares in the privatized companies.

Prof. Nebo expressed his excitement at the support of Nigerian Banks to the on-going privatization in the sector, arguing that the ugly past experienced in the power sector can never come again, just as he vowed that no stone will be left unturned to grow the nation’s economy through provision and access of power.

Responding to the plea of the Forum on Gas, the Minister said that his Ministry is forming a strong synergy with the Ministry of Petroleum Resources to ensure adequate gas supply before the completion of the on-going NIPP projects across the country.

Speaking earlier, the leader of the delegation, Managing Director of Heritage Bank, Ofie Sekibo applauded the on-going privatization in the sector and appealed to the Minister to help fast-track the coming on board of an intervention fund that will provide Banks with necessary muscle for power related projects.