The Minister of State for Power Jedy Agba, has ascribed the current decline in electricity in the country to challenges associated with gas supply to the power generating companies.
He stated this after the meeting of the Federal Executive Council presided over by President Muhammadu Buhari.
He said “We’ve had issues with gas supplies for power plants. We recently reached an agreement with gas supplier firms and NNPC Limited to supplement gas supplies to distributors at the current local tariff.
“Gas was sold to them at export rates, which differ in price, and collection is made at domestic rates.”
“So there was a differential and argument; however, we had an agreement with the NNPC and the Nigerian Gas Company to supply gas to GENCOs, commencing from last week, and they are buying at local price not at the export price.
“So, with that we hope in the very near future in a week or two should have improved generation and supply.”
According to Agba, government was also working to ensure that the Transmission Company of Nigeria, TCN, is adequately equipped for effective transmission of power.
“We hope and I assure you that power generation and distribution as well will improve despite the rains that have come in now,” he said.
Agba said that the Ministry of Power presented two memoranda to the meeting of the Federal Executive Council.
He said the first one was the award of contract for the procurement of 25 (No) of 33 KV circuit breakers and 120 numbers of surge arrestors for systems use for Transition Company of Nigeria.
“We are bent on providing an improved services on electricity to Nigerians. The Transmission Company of Nigeria, TCN, is the main body that has to do the transmission.
“You know generation and distribution are in private hands now so government is only responsible for transmission.
“So most of the equipment have become obsolete over the years, which is why you have breaking transmissions, low power outage, low power supplies and outages here and there.
“With this refurbishments and new procurements, we should be able to improve services and see power supply get better by the day.”
The minister explained that value of the contract was about N140 million as argumentation.
“The contracts have been awarded before and they are ongoing, but we asked for approval for revaluation due to price escalation and additional works. We’re building new sub stations in one of the places.”
Mr. Agba said that the Council also approved the variation due to price escalation on the construction of the Dukanbo Shonga 132 KV Double Circuit Transmission line in Kwara State, which “has been down for several years.”
He said the procurement would enable the ministry to revamp the station to provide service to the area, which is agrarian.
“That’s the area which services the Bacita farm. The Shunga Farms Limited and the whole of that area has been in darkness for a long time.
“With this procurement we hope that in two months, we should have full power supply to those areas and restore farming and processing activities in that area. The cost is N1.5billion.”
Agba also spoke on the activities of the Rural Electrification Agency, which he supervises.
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