- Federal Government reaffirms commitment to address metering gaps and financial challenges in Nigeria’s power sector
- Olu Verheijen outlines initiatives to decentralize transmission, deploy distribution technologies, and mitigate power sector risks
The Federal Government has reiterated its commitment to resolving the metering gaps and financial liquidity issues plaguing Nigeria’s power sector.
During a session at the 2024 edition of CERAWeek by S&P Global in Houston, United States, Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, we affirmed the government’s determination to tackle these challenges.
Verheijen outlined several initiatives to decentralise transmission and ensure closer proximity to electricity demand markets. Regarding distribution, she emphasized deploying various technologies to enhance electricity supply, particularly to high-consuming customers. Despite fiscal constraints, she highlighted the implementation of creative initiatives to mitigate risks within the power sector.
While acknowledging the substantial investment gap estimated at $190 billion by the International Energy Agency (IEA), Verheijen acknowledged the current fiscal limitations but assured that measures are underway to unlock the sector’s potential.
She explained the strategic utilization of initiatives such as the presidential initiative, which aims to double transmission capacity with a $10 billion investment. Additionally, efforts are focused on converting existing customers into paying ones through digital technology and smart meters to boost revenue.
Verheijen stressed the importance of addressing financial liquidity issues once metering gaps are closed. By de-risking the entire value chain, the government aims to attract more capital to the grid, expand access to electricity, and stimulate consumption.
The government’s proactive approach underscores its commitment to enhancing the financial viability of public utilities and attracting investment capital to drive growth and development in the power sector.