National Daily

Power sector to gulp $85 bn

AN estimated figure of $85bn is required to revamp Nigeria's ailing power sector as well as investment in its power infrastructure in order to produce electricity 24 hours a day, which is 17 times the amount government, announced it would spend on the power sector, and four and a half times the country's oil savings. This was declared by a panel of experts appointed by President Umaru Yar'Adua after a nine month research.
The panel's chairman Dr. Rilwanu Lukman told the press that the power generation in the country had dropped to 1,800 megawatts (MW), from a capacity of 3,500MW.

He also said even if the country's power stations were working at full capacity, the transmission grid was broken down and neglected. "The grid is very weak much of the equipment is currently responsible for causing the power cuts across the country, moreover there were not enough engineers in the country to work in power stations or maintain the electricity grid. " he said. The country's short-term goal of 6,000MW by 2009 would cost $3bn (£1.5bn), Dr Lukman asserted.

The government announced last week it would spend $5bn from the nation's oil windfall on the power sector. but the president said the continual power cuts were preventing investment in the country. thus the government is working on plans to attract private investors by subsidising their electricity bills, the finance ministry. Correspondents say restoring the power sector remains one of President Yar'Adua's greatest challenges as most of Nigeria's 140m residents live without reliable power. Their final report of the panel has not been released to the public.