POWER DEBT: NIGERIA RECOVERS $64.6 MILLION FROM, NIGER, BENIN

ASABA, Delta – Nigeria has recovered a total sum of $64,630,055:00 from our international customers in Benin Republic and Republic of Niger being debt owed for consumption of electricity, Minister for Works, Power and Housing, Mr. Babatunde Fashola has announced.

Fashola made the revelation today during the monthly power sector in Asaba, Delta State.

“I am happy to announce that we have recovered $64,630,055:00 from our international customers in Benin Republic and Republic of Niger”, he said the Nigerian Bulk Electricity Trader, (NBET) will work out the modalities to distribute the fund.

He explained that following approval of the Federal executive Council (FEC) earlier this year, the dispute over meters supply contract that started since 2003, was resolved by a Court approved settlement on Thursday the 9th day of November 2017.

“This means that there will be N37 billion available for meter supply by the contractor to DisCos who want to partner and can reach their independent agreement with the contractor. While we await the regulations by NERC, a lot of preparatory work can be done”, he said.

Referring to the local communities under the Benin DisCo, he said Asaba – Benin 330KV line was energized to service on 3rd November 2017. Asaba 330kv substation is now being fed from both Benin and Onitsha.

“The line also raised the number of circuits from Onitsha to Benin to 3 (THREE). Presently a 40mva 132/33kv mobile transformer is undergoing installation at Auchi with in-house capacity to be commissioned in 2 (TWO) weeks time. A new 330/ 132kv substation is to be constructed at Okpai with a 132kv line from the station to service a proposed 132/33kv substation at Kwale. The procurement of the projects are ongoing. Installation of a new 60mva 132/33kv transformer is to commence at Irrua transmission station any time from now”, he said.

He said the Ministry of Power, Works and Housing, on Friday the 10th November 2017, signed the EPC contract for the Mambilla Hydro power project, over 40 years after the project was first conceived.

He explained that Rural Electrification Fund was created by Section 88 of the Electric Power Sector Reform Act (EPSRA) of 2005 to promote support and provide rural electrification access adding that the fund will provide a partial single payment capital subsidy and or technical assistance to eligible private Rural Power Developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity.

“Those who will be served are the unserved and underserved Rural Communities. What they are likely to get are minimum amounts of $10,000 (N3.5m) and Maximum amounts of $300,000. (N106m) or 75% of project cost which ever is less.

“The REA will publish details of guidelines and eligibility. These are only headline items of developments that characterize the progress we are making month after month, especially since March 2017”, he said.