PRESIDENT BUHARI PRESIDES OVER FEC MEETING 15. President Muhammadu Buhari with cross section of Minister during the Federal Executive Council Meeting held at the Council Chamber in Abuja. PHOTO; SUNDAY AGHAEZE. JAN 17 2018.
Trending Story

Power: FEC approves framework for distribution of extra 2,000MW

130

The Federal Executive Council (FEC)  Wednesday approved a new framework to expand the 33KVA and 11KVA electricity transmission lines in the country.

The new measure is to ensure distribution to consumers of additional 2,000 megawatts of generated energy that is currently lying unused at power stations, said Minister of Power, Works and Housing, Babatunde Fashola, at the end of the meeting.

The Federal Government says about 7,000 megawatts of electricity is being generated but the existing national grid cannot transmit and distribute more than 5,000mw.

He explained that  the investment arrangement for which the Federal Government would contribute 40 per cent while the Distribution Companies (DISCOs) would provide the 60 per cent balance of the cost, but he however, did not disclose the cost.

According to him: “While the federal government has 40% shareholding, the DISCOs have 60% and will be compelled to make additional investments which they were supposed to have made.

“The process will involve international investment for the procurement  of the equipment, lines and all of the accessories to build those networks and there will be more under international procurement standards.

“The Federal Government will put its own 40 percent and ask the DISCOs to put their own 60 percent and other parties who are interested will have the opportunity to improve on the investments.

“We are expecting many more power plants to be completed this year which will add almost 1,600MW to the grid. We can’t continue to accumulate power that doesn’t get to the people, so this framework is to start the process.”

Fashola further explained that “Government is now saying we can’t sit down idle doing nothing, let’s start something, a framework for investment. We will advertise for international tenders for people who make the equipment. We need transformers,  conductors, switch gears,  circuit breakers, etc, and with  international competitive pricing.

“Once those prices are agreed, then we will call the private sector owners of the DISCOs, present our own 40 percent and ask for their own. As soon as the pricing is complete, we intend to persuade government to start making its investment. What we have done as a  Ministry is a formulation of policy to government to say this is the next thing we must do and government has approved that policy.”

 

 

Leave a comment

Related Articles

Billionaire philanthropist Tony Elumelu mulls buying NPFL team

As part of his corporate social responsibility, billionaire banker and philanthropist Tony...

Terry G speaks on Davido, Wizkid, and Burna Boy rivalries, faces backlash from fans

Nigerian music sensation Terry G, also known as the Apako master, has...

Dani Alves pays €1m bail, set to leave Spanish jail

Former Brazil and Barcelona star Dani Alves, convicted of rape in Spain,...

World TB Day: 70 percent of TB cases in Africa now being diagnosed and treated – WHO

The World Health Organization (WHO) has disclosed that about 70 percent of...

13th AAG: Tobi Amusan wins gold in women’s 100m hurdles

The Nigerian sprint star, Tobi Amusan, won gold in the women’s 100m...

FG approves N12.7bln for mass metering of army barracks nationwide

The Federal Government says it has released N12.7 billion to provide electricity...

Women’s Day: Tinubu felicitates women, vows to prioritise their welfare, rights

President Bola Tinubu has promised to prioritize the welfare of women, protect...

All African Games: Nigeria’s Flying Eagles start their campaign on a losing note

The Flying Eagles of Nigeria started their campaign in the men’s football...

EFCC sets up task force to combat dollarization of economy, mutilation of naira

The Economic and Financial Crimes Commission (EFCC) has announced the setting up...

How Bafarawa diverted N4.6bln from ex-NSA for prayers, election, acquire luxury vehicles

A startling revelation has been made about how a former governor of...

CBN redeploys 1,500 staff to Lagos

The Central Bank of Nigeria (CBN) says it has redeployed 1,500 staff...

AFCON: Pres. Tinubu says unimpressed with Super Eagles’ performance

President Bola Tinubu has expressed his displeasure over the performance of the...

I’ve not met a man kind enough to marry —Ini Edo

In a candid revelation, renowned actress, Ini Edo, has hinted about the...

Ogun CP visits shot Nollywood actor, Ijaduade, vows to punish trigger-happy cop

Nollywood actor and Director, Azeez Ijaduade, who was shot “accidentally” by a...

Breaking: Actor, Azeez Ijaduade, allegedly shot by policeman in Ogun

In a shocking incident that has sent shock waves to Yoruba section...

Fast and furious actor, Vin Diesel, accused of sexual assault

Vin Diesel, known for his role in the Fast & Furious Series,...

Anyone asking for money this festive season lacks conscience, fear God – Comedian AY

Amid Nigeria’s challenging economic downturn, renowned comedian, Ayo Makun, popularly known as...

Octogenarian actor, Dejumo Lewis, dies

Nollywood community was on Friday night thrown into grief as the news...

I’m lucky to have you as my wife, Lateef praises Mo Bimpe on 2nd wedding anniversary

Celebrating their second year wedding anniversary, Nollywood actor, Lateef Adedimeji, has expressed...

Frank Edoho faces backlash for controversial remarks on infidelity

Renowned media personality, Frank Edoho, is under fire after making contentious comments...