Nigeria will require 40 billion dollars to meet the power sector target, the Director-General of Bureau for Public Enterprises (BPE), Ms Bolanle Onagoruwa, has said.
Onagoruwa spoke on Tuesday in Abuja at a one-day workshop for financial correspondents. .
“The massive decay in the sector requires the sum of 40 billion dollars (N6 trillion) to meet Nigeria’’s electric power requirement between 2010 and 2020. It has been noted that despite the massive investment by the Federal Government of Nigeria, the transmission and distribution capacity is still below 4,000 megawatts.
According to her, there are also capacity constraints in the transmission and distribution networks which require significant investments. She said that only private sector involvement could guarantee virile technology development and management.
“Available information indicates that all the plants in the unbundled PHCN are in poor condition with several of the units and supporting services completely down. The recent power shortage in the country, despite the Federal Government’s frequent financial intervention is fast becoming intolerable for the nation.
As we may recall, we are in the process of appointing privatisation advisers as precursor to the privatisation of the successor companies,” she said. Onagoruwa said that President Goodluck Jonathan was concerned about the welfare of workers, even outside the realm of privatisation.
“Mr President has approved N130 billion in the supplementary budget for the full payment of all financial benefits which would accrue to the PHCN workers. We enjoin the workers and their union in the sector to reciprocate this noble gesture of Mr President and cooperate in making the reform programme a success,” she said.
Mr Eyo Ekpo, the Chairman of the Presidential Task-Force on Power, said that government alone could not address the challenges being faced in the power sector .