The Federal Government has said that it would commit the majority of about $1.6 billion proceeds to be realized from the sale of the National Integrated Power Projects, NIPP, to tackle the problem of transmission in the country.
The Minister of Power, Professor Chinedu Nebo, who disclosed this while receiving members of the Independent Power Providers Association of Nigeria, IPPAN, in Abuja, said further that the Nigeria Bulk Electricity Trader, NBET, will be fully capitalized to guarantee smooth operation for independent power providers in the country before the end of the year.
The minister said the move was to ensure that there is enough wheeling power provided for the distribution of every megawatt of electricity generated.
Nebo, who called for more active participation by independent power providers in the sector, assured that import duty waivers would be provided for all power equipment, added that the suppressed demand for power in the country is so huge that no matter the number of providers on board, there will still be a market for any amount of power generated.
He drew attention to the breakthrough in the Telecommunications Industry, saying, “what is about to happen in the power sector will dwarf that of the Telecoms.” He also stated that the President will be performing the commissioning ceremony of Geometric, Aba, the first independent power project in the country.
The Chairman of IPPAN, Prof. Jerry Gana, in his response, called for urgent government intervention in the area of challenges faced by IPPAN to fast track the development of power projects being undertaken by its members. Also speaking, Vice Chairman of the group, Mrs. Agatha Nnaji, acknowledged the various problems militating against the smooth flow of power in Nigeria, adding that the group was comforted by the support being promised by the Minister.
Information from Vanguard was used in this report.