FG tasks local power firm on energy gap in South East
Minister of Power, Chinedu Nebo has urged local power firm, Genesis Electricity Company to take advantage of the huge gap in energy need of industries especially in the South-East region, by making the required investments.
Nebo who assured the company of federal government’s support, explained that in Nnewi, the hub of industrialization in that region, about 40 factories have had to shut down, due to huge cost of running generators. (Daily Independent pg28)
Stable power: Still a long way to go
GOING by the rebasing of its Gross Domestic Product (GDP), Nigeria emerged Africa’s largest economy, but indices to support the supposed growth are not visible. Electricity, which is the key driver of industrialisation, remains a problem as demand outstrips supply.
About 10 years ago, the Federal Government embarked on privatisation of the power sector as part of search of lasting solution solution. This culminated in the enactment of the Electric Power Sector Reform Act (EPSRA) 2005, which set the rules for transition to private sector control, such as the unbundling of the Power Holding Company of Nigeria (PHCN) into 18 successor companies, establishment of appropriate tariff regime and gas pricing, to encourage private investors. tin line with the law, President Goodluck Jonathan launched the Power Sector Reform Road map in 2010. read more
N30bn gas supply debt weighs down power sector growth
The inability of power sector operators to pay up the over N30 billion they owe the Nigeria Gas Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), is posing a big challenge to the success of the power sector privatisation and slowing down the growth of the gas sector.
The debt is crippling gas suppliers’ efforts to expand their operations and increase the volume of gas supply to the generating plants as well as undermining the ability of the generating plants to deliver sufficient electricity to the distribution companies. read more