The Federal Government has secured a $5 million loan to upgrade power distribution infrastructure and increase electricity generation to over 8,000 megawatts (MW) in the next twelve months.
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The Director General of the Bureau of Public Enterprises (BPE), Ayodeji Ariyo Gbeleyi, revealed this during the Nigerian Independent System Operator (NISO) retreat held in Abuja over the weekend.
Gbeleyi, while speaking at the event, charged the NISO management to address the gap between the current daily wheeling capacity, which stands at around 5,500MW, and the generation capacity, which already exceeds 14,000MW. He identified the real challenge as the weak transmission and distribution networks.
He said, “In the near term, 12 to 18 months, we can scale up capacity to probably increase that 5,500MW by a minimum of 50 per cent because generation capacity is there in the grid. So, capacity can be scaled up. Chances are that with the distribution infrastructure also being scaled up, we’re going to focus on three pillars: operational efficiency, financial prudence, and governance.”
The Managing Director of NISO, Engineer Abdu Mohammed Bello, was optimistic about reaching the 8,500MW target, citing increased investor interest and stronger private sector engagement.
“We have a lot of resources. Nigeria harnessing these resources together, definitely we can do that. At the end of the day, we expect to see real-time grid operations. We expect to see modernisation of the grid. Government has awarded a new contract for the SCADA system,” the NISO chief stated.
Stakeholders at the event stressed the need for commitment, transparency, and coordinated efforts across agencies to overcome longstanding challenges, adding that stability, market transparency, and operational independence are crucial to power sector growth.
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