$350bn required to resuscitate power sector –Nebo

Minister of Power, Prof. Chinedu Nebo, has stated that the
country would require about $350 billion to effectively develop
its power sector in the next 15 years.
He also announced that the Federal Government has con­
cluded arrangement to facilitate the provision of over one
million meters to electricity consumers in its determination to
address the issue of estimated billing by the electricity
distribution companies (Discos).
Speaking Thursday during a Town Hall Meeting organised by
the ministry in Abuja, he noted that power sector was the
most capital intensive sector of the economy.
Expatiating on the huge financial resources required in the
sector, Nebo said, “when you just talk about one megawatt of
power, what is the least cost to get one megawatt? It is about
$1.5 million. At the rate of naira to US dollar exchange, you
are talking of somewhere very close to N300 million to get
one megawatt.
“Nigeria needs about $350 billion to continue to grow power
up to 2030. Multiply that by over 185 and you will see how
many trillions of naira you will end up having.
“Actually, this goes beyond trillions of naira. We are here
talking of trillions of naira and those of you who don’t know
that after trillion, you go to quadrillion. And I don’t think
anybody has thought of a budget of quadrillion in Nigeria. But
that is what we need. It is a very expensive sector.
“And it takes long to deliver. For gas project – to find a gas
field, to develop it and begin to produce gas from it will take
about 36 months. Sometimes it takes five years, sometimes
seven years. These things don’t come by wishful thinking.
They come by planning, doggedness, determination to make
sure that what you plan is realised,” he said.
The minister, who unveiled the new power generation plan for
the country in the next two years, emphasised on more
collaboration with security agencies for the protection of gas
pipelines and other power infrastructure.
The government, according to him, will develop the 700MW
Zungeru Hydro Power Plant and complete the 17 small and
medium Hydro Power Plants, that is the 40MW Kashimbilla
and 34MW Dadinkowa Dam within the period.
Nebo said government would commence development of the
3050MW Mambilla Hydro Plant and fast track Operation Light
Up Rural Nigeria project and rural electrification as well as
implementation of the National Renewable Energy and Energy
Efficiency Policy.
power supply to Lagos, the nation’s commercial nerve center.
The transformation at the nation’s largest generation plant
commenced following its acquisition by Sahara Power working
through a number of Special Purpose Vehicles (SPVs) in
collaboration with its technical partner, Korea Electric
Corporation (KEPCO).
The Sahara Power/KEPCO partnership has produced an
unprecedented level of innovativeness, professionalism, human
capital development and continuing investment in new
technology at Egbin Egbin Power Plc. Its Chief Executive
Officer, Engr Mike Uzoigwe, said the company considers the
rehabilitation of ST Unit 6 to be a major breakthrough, noting
that huge resources were deployed into achieving a complete
tear down overhaul of the unit.
Uzoigwe noted that in spite of the fact that the electricity
market in Nigeria is not yet bankable, Egbin has in
collaboration with KEPCO continued to achieve laudable feats
for the benefit of this country. He added that KEPCO had
begun the overhaul of unit ST-04 as Egbin continues its quest
to ensure Egbin operates in compliance with globally
acclaimed standards.
“When we took over Egbin Power Plant in November 2013,
there was a sworn declaration to deploy all of our available
resources required to transform the plant into a centre of
excellence. We are happy that this is being achieved through
the expertise of our staff and KEPCO and we are delighted to
say we are on course towards achieving our object of being a
foremost power generation plant in Africa,” he said. According
to KEPCO’s Mr. Gyoo Yeom, the unfolding plan for Egbin is
aimed at replicating in Nigeria the success which KEPCO is
renowned for in the global power sector.
Yeom said Egbin has its sights on “further expansion of the
plant as the new management continues to embark on
achieving its vision of attaining 2, 670 megawatts by 2017
and total capacity of over 10, 000mw in the next decade, if the
demand permits.