FG reveals N7tn direct investment in power sector after privitization

The Federal Government claimed on Tuesday that it has made direct investments in the power sector of over N7 trillion since November 2013, despite the industry’s energy generation and distribution being privatised.

It disclosed this at a briefing in Abuja to make the participants and stakeholders roundtable for the Nigerian electricity supply industry market announcement.

International donations were not included in the N7tn, it was revealed.

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The Transmission Company of Nigeria disclosed this.

It said the privatisation of the power sector was necessary because of the failure of the defunct Power Holding Company of Nigeria, but noted that the industry had not lived up to expectations.

The Market Operator of the Federal Government-owned Transmission Company of Nigeria, Dr Edmund Eje, said, “You and I were enthusiastic about privatisation; yes, the government has no business doing business and we saw that NEPA failed. We were all witnesses and so everybody was enthusiastic to have something different that would usher us into a new power paradise. But it never came.

“Now this conference is to evaluate. What are the issues? The Federal Government has spent about N7tn on interventions, direct interventions. I am not talking about monies from donors, but on direct interventions and we are also asking for more.”

He added, “Distribution companies have been making frantic efforts to ensure that they service their jurisdictions; what are the problems inhibiting them? The TCN has been executing lots of projects worth billions of naira and dollars. The generation companies are there, and almost every year you will add a new generator.”

Eje said the market had not been able to pay for up to 4,000 megawatts of electricity for more than two decades. According to him, these are some of the issues to be discussed at the conference.

He noted, “Since 2005, we have never invoiced anything more than 4,000MW. It is on record. So this conference is going to be no holds barred, and it is coming at the right time.”