The inefficiency of the various major stakeholders in Nigeria Power sector is having a negative impact on the financial inflow into the sector as billions of naira is been used in providing alternative sources of electricity to power major industries in the country.
Nigeria’s electricity sector is losing N24 billion monthly to the diesel generator market, which consumers especially heavy electricity users like industries, embrace as alternatives to power their homes and operations, the federal government has disclosed.
Speaking on Monday, the Minister of Power, Works and Housing, Mr. Babatunde Fashola, who was represented at the February 2018 edition of the monthly power sector operators meeting in Katampe Abuja by the Minister of State for Power, Works and Housing, Mr. Suleiman Hassan, explained that on the average, 300 million litres of diesel were consumed monthly to power these generating sets.
Fashola stated this shortly after commissioning a 100 mega volt amp (MVA) transformer installed by a power firm — MBH Power Limited — for the Transmission Company of Nigeria (TCN) at its Katampe transmission substation.
The high voltage transformer, which is expected to increase the transmission capacity of the substation by 48 megawatts (MW), was reportedly financed by the World Bank at a cost of N59.6 billion.
The minister noted that the expenditure made on diesel consumption in Nigeria, acquisition and maintenance of the generators were huge losses to her grid power market.
He explained that the government was making efforts to ensure that up to 2,000 megawatts (MW) of stranded power in the system were transmitted and distributed to target consumers who need them the most but do not have that much of power yet.