FG earmarks N1bn for expansion of electricity distribution network in 2019 budget

The Federal Government (FG) in the 2019 proposed budget has earmarked the sum of N1 billion for the expansion and reinforcement of electricity distribution networks as against the initial N72 billion proposed for this course.

Also, in the proposed budget recently presented by President Muhammadu Buhari before the National Assembly, the Federal Ministry of Power, Works and Housing set aside the sum of N5 billion for settlement of Ministry Departments and Agencies (MDAs) electricity debts.

The expansion of the distribution infrastructure according to the FG was borne out of the need to evacuate the controversial stranded 2,000 MWs and reduce the incidence of stranded power.

The FG and DisCos had been at loggerheads over the alleged stranded 2,000MWs of electricity due to constraints from the distribution network. As a result, N72 billion investment in the distribution assets was proposed by the FG but in the newly proposed budget, only N1 billion was put aside for the purpose.

Source: Tribune

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