The Minister of State for Power in Nigeria, Jedy Agba, has said that the current diminish in electricity across the country is caused by challenges associated with gas supply to the power generating companies.
Agba revealed this on Wednesday in Abuja at the meeting of the Federal Executive Council presided over by President Muhammadu Buhari.
“We’ve had problems with gas supplies for generating companies. We just negotiated with the gas supply companies and NNPC limited to augment gas supplies to distributors at the ongoing local rate.
“Gas was sold to them at export rate, whose price differs, and the collection is made on domestic rates.
“So there was a differential and argument; however, we had an agreement with the NNPC and the Nigerian Gas Company to supply gas to GENCOs, commencing from last week, and they are buying at local price not at the export price.
“So, with that we hope in the very near future in a week or two should have improved generation and supply.”
According to Agba, government was also working to ensure that the Transmission Company of Nigeria, TCN, is adequately equipped for effective transmission of power.
“We hope and I assure you that power generation and distribution as well will improve despite the rains that have come in now,” he said.
On the memoranda plans, Agba said that the Ministry of Power presented two memoranda to the meeting of the Federal Executive Council.
He said the first one was the award of contract for the procurement of 25 (No) of 33 KV circuit breakers and 120 numbers of surge arresters for systems use for Transition Company of Nigeria.
“We are bent on providing improved services on electricity to Nigerians. The Transmission Company of Nigeria, TCN, is the main body that has to do the transmission.
“You know generation and distribution are in private hands now so the government is only responsible for transmission.
“So most of the equipment has become obsolete over the years, which is why you have breaking transmissions, low power outages, low power supplies and outages here and there.
“With these refurbishments and new procurements, we should be able to improve services and see power supply get better by the day.”
The minister explained that the value of the contract was about N140 million as argumentation.
“The contracts have been awarded before and they are ongoing, but we asked for approval for revaluation due to price escalation and additional works. We’re building new substations in one of the places.”
Mr. Agba said that the Council also approved the variation due to price escalation on the construction of the Dukanbo Shonga 132 KV Double Circuit Transmission line in Kwara State, which “has been down for several years.”
He said the procurement would enable the ministry to revamp the station to provide service to the area, which is agrarian.
“That’s the area which services the Bacita farm. The Shunga Farms Limited and the whole of that area has been in darkness for a long time.
“With this procurement we hope that in two months, we should have full power supply to those areas and restore farming and processing activities in that area. The cost is N1.5billion.”