$10 billion is needed yearly for the next ten years to revive power sector in Nigeria and nip in the bud the challenges bedeviling it. This is according to Minister of Power, Adebayo Adelabu.
Adelabu said this on Monday when he appeared before the Senate Committee on Power for investigative hearing over the recent electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC).
The minister said, “For this sector to be revived, government need to spend nothing less than 10 billion dollars annually in the next 10 years.
He said the money will be spent on the infrastructure requirement for the stability of the sector. But government cannot afford that, hence the reason to make this sector attractive to investors and to lenders.
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“So for us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.
“If the value is still at N66 and government is not paying subsidy,, the investors will not come. But now that we have increased tariff for a Band, there are interests being shown by investors.” He said.
Adelabu said the inability of the government to pay outstanding N2.9 trillion subsidy was due to limited resources, hence the need to evolve measures to sustain the sector.
The minister appealed to the lawmakers’ to support the process of paying the debt owed operators across the value chain of generation, transmission and distribution.
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He noted that as part of efforts to improve power supply, the government was investing in hydroelectric power, constructing 700 megawatt power in Zungeru and Kashimbila Hydroelectric power plant of 40 megawatt was awaiting evacuation to improve generation.
The minister said there was also an ongoing investment of 26 small hydropower dams to boost electricity production across the country.
But the Senate Committee on Power, led by Senator Enyinnaya Abaribe, expressed concerns over the suffering of Nigerians, and flayed the minister and his team for not doing enough.
Abaribe, who is Chairman of the Committee, said, “What Nigerians wanted was a solution to the issues and ways to ensure liquidity in the sector.
On their parts, Senators Simon Lalong (Plateau South) and Adamu Aliero (Kebbi Central), said consultations were not made before the tariff increase, stressing palliative would have been provided in the process.