The Federal Government has announced that it will soon release $800 million for the construction of new substations and distribution networks as part of the Presidential Power Initiative.
This development was revealed by the Minister of Power, Adebayo Adelabu, during a recent facility tour of a power company in China, as reported by the National Television Authority on Sunday.
Minister Adelabu emphasized that the forthcoming power infrastructure projects are designed to address the ongoing issue of load rejection by electricity distribution companies, which has been a significant bottleneck in the country’s power sector.
He elaborated that the initiative will be implemented in phases, with Lot 2 covering the franchise areas of the Benin, Port Harcourt, and Enugu distribution companies, while Lot 3 will focus on the franchise areas of the Abuja, Kaduna, Jos, and Kano distribution companies.
The Minister further disclosed that on Friday, August 30th, power generation in the country reached a peak of 5,170 megawatts.
However, this figure had to be scaled back by 1,400 megawatts due to the inability of the Distribution Companies (DISCOs) to absorb the full supply.
Adelabu expressed deep concern over this situation, particularly in light of the government’s ongoing efforts to ramp up power generation to 6,000 megawatts by the end of the year.
During an interactive session with the management of TBEA, a leading power company in China, Adelabu reaffirmed the federal government’s strong commitment to partnering with world-class organizations like TBEA to advance President Bola Tinubu’s Renewed Hope vision for Nigeria’s power sector.
He underscored that this collaboration is critical to improving transmission and distribution networks across the entire power sector value chain, with a particular emphasis on bolstering Nigeria’s renewable energy capabilities.
The Minister also addressed the challenges that have long hindered the nation’s industrial growth, pointing out that many of these issues are rooted in outdated and deteriorating transmission and distribution infrastructure.
He stressed the urgent need for significant modernization to bring these systems up to current standards, which is essential for supporting Nigeria’s broader economic development goals.
This initiative is seen as a pivotal step towards overcoming the infrastructural deficits that have plagued the power sector for years, and it reflects the government’s broader commitment to revitalizing the industry to meet the needs of the growing economy.