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Thursday, October 31, 2024

Govt apologises over national grid collapse, to empower states on power decentralisation

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The Federal Government has apologised over the recent collapse of the national grid which caused power outages for several days in 17 states in the region.

Vice-President Kashim Shettima
Vice-President Kashim Shettima (right) at the National Economic Council (NEC) meeting in Abuja

The Minister of Power, Chief Adebayo Adelabu, gave the apology on Thursday, October 31, 2024, during a courtesy visit to Gov. Abba Yusuf of Kano State, describing the situation as “very unfortunate.”

Adelabu said the Federal Government was overhauling the national grid to reduce the frequent disturbances in the system and improve power supply across the country.

He said that the national grid was over 50 years old, with components that are weak, obsolete, and dilapidated, including the lines and substations, with old transformers.

Adelabu said most of the towers installed on the system a long time ago were falling due to the effects of weather and climate change, adding that they need continuous maintenance.

The minister said: “This grid requires a lot of money to maintain.

“So, what we have now, we will continue to manage it and prevent frequent disturbances until we are able to overhaul this infrastructure 100 percent.”

Adelabu said the Federal Government was revamping the entire grid structure as various programmes were being put in place to ensure that old infrastructure were replaced.

He listed the programmes to include: Presidential Power Initiative (PPI), known as the Siemens project, which is currently ongoing.

According to him, there is also the Transmission Company of Nigeria (TCN)’s expansion programme supported by the World Bank and the African Development Bank (AfDB) .

Adelabu said that the pilot phase of the Siemens project had just been concluded and it involved the importation of 10 power transformers as well as 10 power mobile sub-stations.

He said that phase one of the Siemens project would soon commence after which the grid performance would be better than what was being experienced presently.

The minister  said that the improvement witnessed in the power sector was not accidental, explaining that many old power transformers were replaced by new ones.

“We have also installed and inaugurated all the mobile sub-stations where they were needed and that was what contributed to the stability being witnessed,” Adelabu said.

He appealed to Nigerians to protect the nation’s power infrastructure from vandals, as they cost a lot of money.

Earlier, Yusuf, represented by his Chief of Staff, Alhaji Shehu Sagagi, said that the state government was completing work at the 10 megawatts hydropower plant at Tiga and 6 megawatts at Chalawa hydropower plant.

”They are assisting five per cent of the population as well as the installation of solar power in the metropolis, which has assisted the security situation in the state

“When we came on board, we procured 500 transformers and they were distributed to improve power supply,” he said.

Yusuf  said that the state government would soon establish a state electricity market to attract the private sector.

He urged, “We are calling on President Bola Tinubu to intervene and set up emergency mini grid power plant that will supply adequate voltage in the state and diversify generation to reduce dependence on the national grid.”

In a related development, Vice-President Kashim Shettima has said that the Federal Government will promote constitutional framework that empowers states to generate, transmit, and distribute electricity in areas covered by the national grid.

Shettima gave the assurance on Thursday at the 145th National Economic Council (NEC) meeting held at the Presidential Villa, Abuja.

Addressing the Council, the Vice-President said that the decentralisation of the national grid would put an end to incessant collapse that has plunged some states in the North into total darkness.

“The recent blackouts caused by the actions of vandals remind us of our urgent need to expand our energy infrastructure.

“I believe the governors here would agree that the decentralisation of electricity is our path forward.

“We will continue to promote the constitutional framework that empowers constituent states within the Nigerian federation to generate, transmit, and distribute electricity in areas covered by the national grid,” he said.

Shettima added: “Together, we can make instability a relic of the past. Furthermore, our energy sector must embrace the potential of renewable energy.

“We must leverage solar and mini-grid solutions tailored to regional needs. I urge the Council to support the implementation of the Nigeria Energy Sector Implementation Plan (NESIP).

“If we capitalise on our diverse regional energy resources – from northern Nigeria’s solar potential to the south’s gas reserves – we can build a resilient, decentralised energy system that drives growth and empowers our communities.”

The Vice President listed some of the measures for the decentralisation of the national grid to include the establishment of mini-grids, solar and renewable energy sources like solar photovoltaic and wind turbines.

He also stressed the urgent need for the implementation of the Nigeria Energy Sector Implementation Plan (NESIP).

The Vice President also assured the council that the tax reforms initiated by President Bola Tinubu would broaden the nation’s revenue base, foster economic stability, and diminish dependency on specific sectors.

He said the tax reforma had opened avenues to address stakeholders’ concerns, particularly regarding VAT reform and its implications for sub-national revenues.

“As representatives of diverse interests, I have no doubt that you share a common aspiration: to broaden our revenue base, foster economic stability, and diminish our dependency on specific sectors,” he noted.

On Human Capital Index, Shettima cautioned that it was a tragedy that must be confronted following Nigeria’s low ranking.

“We grapple with alarming statistics related to life expectancy, maternal and child mortality, and educational attainment,” he said

Shettima also shed light on the progress made so far in the bid to mitigate flood disasters, noting that “the past few months have tested the durability of the solutions” implemented to advance flood resilience.

“Although the floods caught many of us off guard in various parts of the nation, our proactive mitigation efforts have inspired sustainable strategies to address the extensive damage caused, including significant property losses and health risks.

“I commend the Minister of Water Resources and the Director-General of National Emergency Management Agency (NEMA) for their foresight and swift action.

“Today invites us to reinforce our commitment to implementing approved mitigation measures, ensuring that states report their flood damages comprehensively, as outlined in our NEC Ad-hoc Committee report

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, also briefed the Council on several key national accounts.

According to him, the Excess Crude Account stands at 473,754.57 dollars, the Natural Resources Fund at ₦26,105,837,627.67, and the Stabilisation Account at ₦36,299,452,763.62.

The Minister also updated NEC on current economic relief measures, with 25 million Nigerians benefitting from federal social protection initiatives.

This, he said, include the digital outreach, microenterprise loans, and sector-specific support for power, agriculture, manufacturing, health, and compressed natural gas (CNG) initiatives.

Edun also announced a new government policy that would permit Nigerians who currently hold dollars outside the formal banking system to bring those funds into the financial system.

This, he said, will be done within a nine-month period, without facing any legal liability or financial penalties.

The council addressed Nigeria’s flood crisis affecting 34 states, 217 local government areas, and over 1.3 million people.

The Minister of Water Resources and Sanitation, Prof. Joseph Utsev, reported that there were 740,743 displaced individuals, 321 fatalities, and extensive property and farmland losses.

The council resolved that the Ministry of Water Resources conduct an integrity review of all waterways and dams across the country.

It urged state governments that have not done so to immediately submit their flood reports, that the Green Climate Fund should have an infrastructure resilience fund component.

“And that all MDAs should immediately implement flood resilience and adaptation mechanisms.”

Similarly, the council also reviewed the World Bank-supported SOLID project, presented by the Minister of Budget and Economic Planning, Sen. Abubakar Bagudu.

The project aims to bolster services and economic opportunities for IDPs and host communities in northern Nigeria, including initiatives for sustainable livelihoods and resilient infrastructure.

NEC urged cooperation among states and the World Bank to ensure funds meet designated project goals.

By Aminu Garko and Salisu Sani-Idris

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