By Oscarline Onwuemenyi

ABUJA- The Federal Government,Tuesday, made good its promise to drive the new era in the power sector with the private sector as it issued 20 licences to independent power producers, IPP.

They are expected to add 6258 mega watts of electricity to the nation grid within the next 36 months. A distribution licence was also issued to Aba Power Limited for tenure extension in Aba, Imo State.

Perhaps the most remarkable of the licences was the one issued to Zuma Energy Nigeria Limited to produce 1,200Mw from coal deposits in Itobe, Kogi State.

Presenting the licences, Minister of Power, Prof. Barth Nnaji said: “From the budget of the Ministry of Power, we are giving N20 billion to the bulk trader so they will have money to pay for power from power producers. We are also giving N20 billion to NELMCO to assist in buying over most of the liabilities of the government power operators in preparation for the privatisation.

“The privatisation is moving forward and we expect that by the second or third quarter of next year, we should have concluded the process and handed the sector over to private concerns.”

Also speaking at the event, Chairman of the Nigerian Electricity Regulatory Commission, NERC, Mr. Sam Amadi, said five other firms were undergoing scrutiny for the possible issuance of similar licences.

He described the issuance of the licences as a landmark event for the sector, noting that the licence to the bulk trader to commence operations is also a major boost to the reforms in the sector.

Chairman of the Independent Power Producers Association of Nigeria, Prof Jerry Gana, expressed joy that some of the impediments that had hindered independent power producers from operation in the last one year had been resolved by government.

He tasked the owners of the licences to ensure speedy commencement of work “such that Nigerians will begin to enjoy stable power sooner than expected.”

He charged the Federal Government to fund the bulk trader, pointing: “That is our key agency. We sell to them when they produce and they make the investment worthwhile.”