Potpourri News Logo
Potpourri News

Lagos, A’Ibom, Rivers & More Eye $10bn Power Investment

Lagos, A’Ibom, Rivers & More Eye $10bn Power Investment

Lagos, Akwa Ibom, Rivers, and other states have moved to develop suitable institutions for establishing state regulatory commissions and licensing investors interested in investing around $10 billion in the industry in response to the proposed revision to Nigeria’s Electricity Act.

Electricity distribution in Nigeria

Before President Muhammadu Buhari-proposed modification, the power industry was included on the Federal Government’s Exclusive List, which barred states from making investments and controlling the nation’s generating, transmission, and distribution activities.

Lagos needs to generate more power – GOVERNOR

Governor Lagos State

Vanguard’s checks showed that the exclusion led to low investment and the provision of sufficient electricity to consumers.

Babajide Sanwoolu, the governor of Lagos State, said that the proposed amendment remained a positive move since it would allow Lagos to produce more power to satisfy increased demand.

The governor wrote in the Lagos State Electricity Strategy, which Vanguard received yesterday, that the state is the commercial hub of the nation and has a sizable manufacturing and service sector.

About 30% of the nation’s GDP and 50% of the non-oil GDP are accounted for by Lagos State. Less than 1,000 megawatts of electricity from the national grid are used to power this, distributed to the state’s two electricity distribution companies (Discos).

“In actuality, Lagos depends almost exclusively on a fleet of backup generators with a capacity of no less than 15,000 MW, fueled by pricey and highly polluting distillates like fuel oil, gasoline, and diesel.

cfac612d 56c6 440c 8a4d 0e3aa14ef381 2

No modern, progressive economy has ever prospered in the face of such an unbalanced supply and inadequate electricity.

A major goal of our T.H.E.M.E.S. program, “Making Lagos a 21st Century Economy,” is to strategically expand the State’s vital industries, which can only be done with consistent availability of

Similarly, Babajide Sanwoolu’s administration began preparing for this as soon as he took office because they believed it would have an influence on the sector and the country’s economy, according to Olalere Odusote, commissioner for energy and natural resources in Lagos State.

According to him, the state was happy that the House of Representatives and the Senate were striving to approve the Act before the current administration of President Muhammadu Buhari came to an end.

power. Lagos State has committed to enacting new policies and a strategic plan that will greatly increase the viability of investments in the Lagos State Electricity Market. According to the 1999 Constitution (amended), the State Government would be directly responsible for creating, expanding, and regulating a Lagos Electricity Market.

“You are no doubt aware that Lagos has been planning for this since Mr. Sanwo Olu assumed office,” the commissioner stated. The Lagos House of Assembly is now considering the Lagos electricity law, which will establish both the regulatory and a rural electrification agency.

We welcome private investment and plan to grow – IBOM POWER BOSS

According to research done over the weekend by Vanguard, the state House of Assembly has begun considering introducing the required legislation that would lead to the creation of regulatory commissions at the state level.

The senior special assistant to the governor of Akwa Ibom State and managing director of Ibom Power, Mr. Udom Emmanuel, stated in a telephone interview over the weekend: “The state House of Assembly should put the necessary legislative issues in place to pave the way for other things to emerge.

The state of Akwa Ibom is prepared. Keep in mind that Ibom Power is currently contributing to the nation’s grid by producing electricity. We want to grow.”

Rivers and others plan to increase their investments in the power sector.

The government of Rivers State has also decided on plans to increase its investment in the power industry.

Yesterday, the Commissioner of Information and Communications, Chris Finebone, was unable to react in a timely manner, but Vanguard’s investigations revealed that the state was well-positioned to increase investment in thermal power facilities thanks to its vast natural gas reserves.

It also demonstrated that other governments, particularly those in the Niger Delta, had reached agreements on plans to allocate additional funds to promote investment and economic growth in their regions.

States and discos ought to work together, says PROF BART NNAJI

Prof. Bart Nnaji, a former minister of power, described the proposed modification as a welcome move in a telephone chat with Vanguard yesterday. He added that it would allow states with the necessary competence, particularly Akwa Ibom and Rivers, to spend more in the sector.

This is a fantastic development, he remarked. States with sufficient resources would be able to take advantage of the opportunity to do more. Yet in order to guarantee that the power generated and transferred gets distributed to consumers in their states, the state governments would need to work more closely with the electricity distribution companies, or Discos. They ought to be able to implement their tempting pricing as well.

States to draw $10 billion more in investment, according to analysts

After President Muhammadu Buhari’s planned modification to the Nigerian Electricity Act, experts and analysts had already anticipated that the electricity sector would attract an extra investment of more than $10 billion.

The CEO and Managing Director of New Hampshire Capital Ltd, Mr. Odion Omonfoman, stated the following in a phone interview with Vanguard: “It is difficult to say precisely how much additional investment will be attracted as a result of the modification. Yet it might be fairly substantial. In three years, I anticipate it to reach more than $10 billion.

“The amendment would result in the creation of gas pipeline infrastructure, metering assembly plants, electricity cooperatives, electricity distribution companies, and generation and generation companies, or Gencos and Discos, respectively. States can now enact laws to control the production, transmission, and distribution of electricity within their borders, making these and other things conceivable.

Dr. Muda Yusuf, the CPPE’s chief executive officer, stated: “We anticipate that an extra $10 billion in investment will be made. This is due to the fact that we are dealing with an extremely large power supply deficit, which presents fantastic investment prospects.

“This amendment’s system of decentralized electricity delivery is significant. The fact that it covers the full value chain of power, from generation to distribution, is instructive. It is a constructive development that merits praise.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *