Barring any unforeseen circumstances, the federal government is set to release $100 million to Siemens to carry on with the necessary rehabilitation works in the power sector.
The chairman, Senate Committee on Power, Senator Gabriel Suswan disclosed this Wednesday at the Nigeria Oil and Gas Conference, in Abuja.
The release of the money was agreement between the Federal Government and the National Assembly because of the compelling needs to improve the power supply situation in the country.
According to the agreement which was reached about a few days ago, would enable the Siemens to strengthen the necessary infrastructure that would enable the country to raise power generation to 7000 megawatts.
Also Read: 25,000MW deal: Scope of works on FG, Siemens Power Deal Expanded with additional 22 transmission substations.
The Siemens Power Project under the Presidential Power Initiative is aimed at increasing Nigeria’s electricity from the current 4,500 megawatts (MW) to 25,000 MW.
The phases cover the upgrading and expansion of the Transmission Networks (TN) and Distribution Companies (DisCos) networks. Improvement of access to affordable, efficient and reliable electricity and, providing support for industrial and economic growth in the country.
“Given Siemens AG’s accomplishment of a similar plan in Egypt and also its reputation as an international giant in the power sector related engagements, it is strongly believed that the Nigeria Electricity Roadmap (NER) is possible and achievable.
The new electricity Act that is expected to be passed in two weeks, he said, it is intended to address the multi layer problems that is besetting the power sector.
The Senator said all the legislations concerning the power sector have been consolidated into one document. “Once, the integration of National Electricity Project becomes law, it would be looking into every three years so that whatever anomalies that are observed are corrected”
He said the power sector was unbundled without setting milestones for the operators, but with integrated Electricity Strategic Project in place, this would not happen again.
On the role of Nigeria Electricity Regulatory Commission NERC in the new Act, he said the organization has been strengthened with its power widen.
NERC is suppose to be autonomous, but is is current not. This is why it is not able to carry out it functions very well. He said currently there are so many interference in the functions of NERC, by the powers that be.
“This should not be so. It should be like the central Bank of Nigeria with full autonomy to operate. It does not have the capacity to act appropriately. But now, in the new law it has been given the latitude.
He stated that a good portion of the new legislation has been devoted for renewable unlike the current legislation that did have space or it.
Each state of the federation or anybody that has the ability to generate, distribute, one megawatt of electricity would be allowed to do with the new legislation.
