The Minister of Power, Chief Adebayo Adelabu, has alleged that despite the power sector generating a record 5155 megawatts, the power were not not taken up.
Though it did not specifically mention the 11 Electricity Distribution Companies otherwise known as Discos, the companies are saddled with the responsibility of power distribution.
A statement issued on Thursday by the Special Adviser on Media to the minister, Mr Bolaji Tunji, quoted the minister speaking at the Board retreat of the Nigeria Electricity Liability Management Company (NELMCO), in Lagos.
He emphasized the reliability of grid connection as a power source rather than captive power plant currently being used by bulk electricity consumers.
“Majority of bulk electricity users, such as industries, are off the grid due to lack of trust and confidence in the past. They now have their own captive power plants in their industries which is more expensive, he lamented,” he said.
According to Adelabu, continued use of captive power rather than grid connection is more expensive.
“The average cost of producing captive power is about N350 to N400 for those connected to gas lines. For diesel, it’s about N950 while petrol is about N550”, he said.
“Once consumers and industries see the trust, the confidence and the stability we are giving, they would be encouraged and reconnect to the grid for a cheaper source of power”.
“We aim to attain the threshold of a new era in power delivery with a target of 6GW by end of December 2024 in the short term and the Federal Government is still focused on the vision 30-30-30.
“By 2030, we aim to achieve 30 gigawatts in the medium term, with renewable energy constituting 30 percent and universal access in the long term, it is imperative that we align on the principles guiding our activities and the strategies driving our progress”, Adelabu said.
He added that the government is currently using a multi-pronged approach to attain these targets for the Nigeria Electricity Supply Industry.
The minister also mulled the idea of differential tariff for the up peak period in order to stimulate demands.
“Having noticed a drop in demand during the off-peak period, we plan to stimulate demands by having a different tariff during the off-peak period. These are some of the efforts we are looking at, especially with our smart meters.”
He urged the board members to reflect on how to embed corporate governance in driving sustainable growth in the sector