News

Grid Failure: Nigerians Will Soon Enjoy 20-Hour Daily Electricity – Tinubu Govt Pledges

Published

5 hours ago

Nov 8, 2024.

The administration of President Bola Tinubu has pledged to deliver a minimum of 20 hours of daily electricity supply to urban and industrial areas in Nigeria by 2027, contingent on improved funding for the country’s oil and gas sector.

Olu Verheijen, the Special Advisor to the President on Energy, shared this goal during the African Energy Week in Cape Town, South Africa, according to a statement by Abiodun Oladunjoye, Director of Information and Publicity at the State House.

EDITOR’S PICKS

EKO HOT BLOG reports that each Verheijen noted the government’s strategy to address Nigeria’s recurring power grid failures, which have caused frequent power outages. Despite a generation capacity of approximately 12,500 megawatts, Nigeria only produces a small fraction of this due to aging infrastructure and insufficient investment.

To improve the electricity sector, Verheijen outlined plans including revenue enhancement, settling outstanding debts, rolling out seven million smart meters, and developing off-grid solutions for isolated areas.

The administration is also encouraging international investors to participate in Nigeria’s energy market, highlighting recent economic reforms like the removal of fuel subsidies and foreign exchange market adjustments as indicators of Nigeria’s commitment to growth. “Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she said.

Verheijen highlighted Nigeria’s underperformance in the oil and gas sector compared to countries with fewer resources, such as Brazil, attributing this to a lack of investment. Nigeria has received only 4 percent of Africa’s oil and gas investments since 2016, while other nations have attracted greater capital. “For example, Brazil holds only 30 percent of Nigeria’s oil reserves but produces 131 percent more, largely due to higher investment levels,” Verheijen stated.

20-Hour Daily Electricity

To attract foreign investment, Tinubu’s administration has introduced incentives for deep offshore and gas projects and streamlined security and regulatory processes to expedite project approvals and reduce costs. The administration aims to cut contracting timelines from 38 months to just 135 days and eliminate a 40 percent cost premium in the petroleum industry.

These efforts include offering tax breaks, clarifying fiscal incentives for deepwater gas, and focusing on midstream and downstream investments, such as compressed natural gas (CNG), liquefied petroleum gas (LPG), and electric vehicle initiatives through the Presidential Gas for Growth Initiative.

Additionally, Verheijen noted that the government has secured over $1 billion in investments across the energy value chain and anticipates final investment decisions on two major projects by mid-2025, including a multibillion-dollar deepwater exploration initiative.