Fresh revelation has emerged from the minutes of the 23rd monthly meeting of the Minister of Power, Works and Housing, Babatunde Fashola, with operators of the power sector, saying Distribution Companies (Discos) in Nigeria is in need of about N73bn investment to enable them distribute the 2,000MW regularly stranded at Generation Companies (Gencos) to customers.
Otherwise, whereas Nigeria currently generates over 6,000MW, less than 2,000MW are not moved to customers, but locked up at generation points.
Business Hilights recalls that the Minister, Babatunde Fashola had at various occasions called on manufacturers and other large-scale power users form clusters so that high volume of power can be seamlessly sent to them. In his views, this model can begin to solve the issue of power lockup at generation points.
Additional details form the meeting showed that out of the N73bn investment, N57.9bn was needed for the procurement of equipment while N15.2bn would be used for logistics.
Top official of the Ministry during the stakeholders’ meeting averred that a draft memo on the framework for implementing investments at the 33/11/0.415kV voltage levels of the Discos to unlock the unutilised 2,000MW in the grid had been forwarded to Fashola for consideration.
The Director noted that out of the needed N73bn, about N57.9bn was needed to procure equipment while N15.2bn would serve as cost of transportation and logistics.
The Ministry official noted further that the Minister has discussed with manufacturers to provide information on locations where they require more power so that it will be easy to target them in moving the huge stranded power even as government continue to work on expanding the distribution networks of the Discos as another way of finding solution for the locked up 2,000MW of unutilised power in the grid.