The Federal Government has announced that it has recovered $64,630,055:00 ($64.6m) from international electricity customers in Benin Republic and Republic of Niger.
The Minister of Power, Works and Housing, Babatunde Fashola, disclosed this while making his remarks at the 21st monthly Power Sector meeting held in Asaba, Delta State on Monday, stressing that the Nigerian Bulk Electricity Trader, (NBET) will work out the modalities on how to distribute the fund.
Nigeria supplies electricity to neighbouring Benin Republic and Niger even as the two countries enjoy better electricity than Nigeria.
The Minister had in Quarterly Business Forum in Abuja in July, said the countries got the supply with the agreement that they won’t dam the river that sustains Kainji Dam.
The minister also noted in the remarks that the Federal government has made N37 billion available for meter supply by the contractor to DisCos who want to partner and can reach their independent agreement with the contractor.
Fashola, during the meeting which was hosted by the Benin Electricity Distribution Company (Benin Disco) noted also that some progress has been made in the last one month in the nation’s “journey of incremental, steady and uninterrupted power.”
“Within the last month Transmission Company of Nigeria (TCN) expanded transmission capacity in Zaria, Kaduna State and Funtua, Katsina State by adding 40 and 60MVA transformers to the Transmission sub-station to increase the TCN capacity to transmit power in those areas.
“The Nigerian Electricity Regulatory Commission (NERC) completed consultation and issued the regulations needed to guide the operations and implementation of the eligible customer declaration that I made, to increase our capacity to distribute power,” he said.
He added that the Rural Electrification Agency (REA) completed the guidelines for the operation of the Rural Electrification Fund, created by Section 88 of the Electric Power Sector Reform Act (EPSRA) in 2005, stressing that it will help vulnerable groups and communities gain access to funding to support their electricity development programme.
He pointed out that the fund will provide a partial single payment capital subsidy and or technical assistance to eligible private Rural Power Developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity.
“Those who will be served are the unserved and underserved rural communities. What they are likely to get are minimum amounts of $10,000 (N3.5m) and Maximum amounts of $300,000. (N106m) or 75% of project cost whichever is less,” he said.
He reiterated that in the bid to strengthen the efforts of the government to increase power supply to the nation, the Ministry of Power, Works and Housing, on Friday November 10, signed the EPC contract for the Mambilla Hydro power project, over 40 years after the project was first conceived.
He disclosed that the 2x15MVA injection substation completed and commissioned on Monday by Benin DisCo, is expected to improve service to Okwe, Akuebulu, Jarret, Ogbeofu, Osadebe Way, Okwe Housing Estate, Oduke, New Jerusalem, Malbovil and more by reducing load shedding and increasing the hours of supply.
He noted however, that Nigerians must assist the government to overcome the challenge of estimated billing and metering, saying “in this regard we anxiously await the Regulation from NERC to open up meter supply Business.”
He also assured that following the approval of the Federal Executive Council (FEC) earlier in the year, the dispute over meters supply contract that started since 2003, was resolved by a Court approved settlement on Thursday, November 9.
Innocent Odoh, Abuja
