By Oscarline Onwuemenyi
Minister of Power, Prof. Bart Nnaji has disclosed that the federal government planned to commission more than 3,300 mega watts of electricity from new independent power plants over the next two years.
He also said that plans were underway to generate additional 3,509MW in capacity through the existing National Integrated Power Projects, NIPP, in a bid to boost capacity and promote private investments in the power sector.
Nnaji, who made the disclosures during a presentation at the National Power Sector Retreat, with the theme: Leapfrogging into Sustainable Power Supply, in Abuja, also stressed that the challenge with procuring gas by the Independent Power producers was a major hindrance to government’s goal of achieving improved generation.
According to him, government was ready to “incentivize the private sector to make investments in the domestic gas industry by ensuring that the approved price to be paid to gas producers remains close to export parity price to LNG plants or other projects in Nigeria, and most importantly that this price is passed through to electricity consumers.”
He added that government would provide, where necessary, FGN-backed credit support so that gas suppliers can secure the financing required for their investments, as well as ensuring the formulation of a gas regulation office and completing the gas contracting framework.
Nnaji explained that the retreat was “very critical for progress in the power sector. We have a roadmap, which is a plan to take us where we want to be with regards to the sector. It is important to take a pause and review your progress, and see if you are following the plan and to point out areas of improvement.”
He added, “We have brought all the stakeholders here so they can all contribute to make sure that we deliver on the Power Sector Reform roadmap. It is important that we hear from them on what is preventing them, or can prevent them, from delivering so that we can see how we can help as government.
“This government is determined to go from being one that puts obstacles to growth to one that supports groups and individuals to provide their best for the country, so that we all can benefit from their services.
Nnaji described as “a no brainer” the insistence by government that workers of the Power Holding Company of Nigeria, PHCN, be transferred to the 18 successor companies, adding that the threat of strike by members of the National Union of Electricity Employees, NUEE, was not a practical move.
He said, “The union has made some progress in understanding the reform, especially the kind that this government is bringing to the power sector. It is a fact that whenever you have a reform, there is bound to be some resistance. Reform, by its nature is progressive but people who are comfortable where they are would rather maintain the status quo.
“You have over a thousand people sitting around in PHCN headquarters, doing nothing but getting paid every day. The law of reform has transferred everything in PHCN to the successor companies, and the workers are supposed to go to the successor companies. Nobody is being relieved of their employment; if anything they are being paid their whole salaries including their transfer allowances.”
He added, “The fact remains that if you are working for a company, you cannot tell the company whether to transfer you or when to transfer you from a particular location. If you happen not to like a transfer, then you are at liberty to resign.”
In his welcome address, the Minister of State for Power, Mr. Darius Dickson Ishaku, noted that the retreat is “aimed at providing excellent platform for the stakeholders in the power sector to brainstorm on the process of ensuring accelerated Implementation of the Power Sector Reform and transformation agenda of the present administration.”
He added that, “The desire of the Federal government to provide Nigerians improved power supply and step up industrialization necessitated organizing from time to time this forum in order to discuss critical issues underlining the power sector by ensuring that challenges brought to the fore are address.”
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