House leadership supports power deregulation

House leadership supports power deregulation

The federal government’s target to increase power
generation in Nigeria to between 8,000 and 9,000 megawatts, as
contained in the new electrical reform blue print, would still not meet
the power demands of Nigerians, chairman of the House committee on
power, Patrick Ikhariale, said yesterday in Benin.

Mr Ikhariale, who spoke when he led other members of
the committee on inspection of facilities of the Power Holding Company
of Nigeria (PHCN), Benin distribution zone, said that this was owing to
the expectations that cottage industries which have packed up because
of low power generation may spring up again to take advantage of
improved power supply.

He said the federal government was exploring
collaboration with the government of Brazil to start the Manbila power
plant in Taraba State which, if fully operational, he said could
generate over 2,000 megawatt; about 35 per cent of our nation’s power
needs.

“The federal government is trying to indeed enhance
the power situation in Nigeria but, for some reasons at different
points in time, we’ve really not got the mark. As we speak today, it is
obvious that we operate below 4,000 megawatts in terms of energy
generation transmission and distribution,” Mr Ikhariale said.

“The requirement of Nigeria conservatively today
can’t be less than 8,000 to 9,000. But I need not educate anybody that
if indeed we get to that, because of the cottage industries, most of
them that have shut down a couple of years ago, coming on board,
springing back to business, it will certainly reduce the potency of
that 8,000 megawatts to meeting the demands of Nigerians as of today.
Therefore, it is to be expected from such reasonable projection that
indeed Nigeria as a country needs a lot more than 8,000 megawatts of
electricity.”

Improved funding

The lawmaker said that to boost government’s
determination of making power available to the people, the National
Assembly allocated over N500 billion for the power sector even when, on
request, the 2010 budget was slashed by 40 per cent.

“It is because of the belief and the focus that the
federal government has in the energy sector that we had so much
allocated to the power sector so to achieve this, all hands must be on
deck and if you choose to develop the generating aspect and overlook
transmission and distribution, it is not going to achieve any
meaningful result.” He commended the federal government for unbundling
the PHCN and exploring other sources of power generation such as wood
and solar energy.

“We know the importance of power that is why whenever
the issue of power is raised in the Assembly, it is followed with so
much enthusiasm and nationalistic interest,” he said.

George Chiatula, the Chief Executive Officer (CEO) of
the Benin distribution zone of PHCN which oversees activities in Edo,
Delta, Ekiti and Ondo states, said the zone was expected to generate
513 megawatt and distribute same to customers in the area.

“But we would only meet that target by the time the 2009 Capital Intervention Projects are fully operational,” he said.

He added that some of the operational challenges
facing the zone were the inability of the NIPP (Nigeria Independent
Power Projects) to complete the transmission projects at Asaba and
Agbor in Delta State; and Okada and Eyaen in Edo State, and others.

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