Another $100bn needed to fix Nigeria’s power sector

June 30, 2019
26 Views

It will take not less than $100 billion, approximately N36 trillion, to enable stable power supply in Nigeria. This is according to the Electricity distribution companies (Discos).

The Discos said the N36 trillion worth of investments will be needed over a period of 20 years.

The Discos disclosed that the investments will include over $10 billion (about N3.6 trillion) in distribution networks over the next 5 years.

The entire power supply value chain of the Discos, according to them, will also gulp about $40 billion (about N14.4 trillion) over the next 20 years.

The Discos would also have to invest about $4.2 billion in the interface project developed by the transmission network in furtherance of TCN’s expansion plan.

The need for electricity to be stable in the country cannot not be over-emphasised. According to the November 2018 edition of the Monthly Business Expectations Survey Report of the Central Bank of Nigeria (CBN), the most compelling factor constraining businesses in Nigeria is insufficient power supply.

The survey underscored the fact that electricity is a very necessary and important ingredient required for businesses to function properly and to expand. Higher electricity costs drive business costs higher and reduce business competitiveness. This is because as costs of electricity rises, businesses look for alternative power sources like generators leading to reduced output and productivity thereby rendering them less competitive.

Similarly, a recent research by the World Bank reveals “that power outages and deficient power infrastructure in Sub-Saharan Africa had a measurable negative impact on economic growth over the period of 1995−2007”.

You may be interested

Imo: Where Supreme Court got it wrong in results computation
News
News

Imo: Where Supreme Court got it wrong in results computation

Webby - January 26, 2020

Facts checking have revealed that the Supreme Court failed to do a thorough mathematical computation of the results of the…

NBA Legend Bryant Dies In Helicopter Crash 
Sports
Sports

NBA Legend Bryant Dies In Helicopter Crash 

Webby - January 26, 2020

US basketball legend and former Los Angeles Lakers star Kobe Bryant was on Sunday killed in a helicopter crash in…

Breaking| Basketball legend Kobe Bryant killed in helicopter crash alongside four others
News
News

Breaking| Basketball legend Kobe Bryant killed in helicopter crash alongside four others

Webby - January 26, 2020

Copyright © 2020 Breaking Times, All Rights Reserved. Bringing you the news as it breaks

Leave a Comment

Your email address will not be published.