Honourable guests and esteemed industry experts.
2. I am pleased to stand before you today at this important event focused on “Powering Nigeria’s Energy Future: Addressing Infrastructure Challenges for Sustainable Energy Development.” Our gathering here signifies a shared commitment to advancing Nigeria’s energy sector, a cornerstone for our nation’s socio-economic growth and development.
2. In a world where energy is the cornerstone of all economic activities, Nigeria’s quest for sustainable development hinges on our ability to tackle the challenges within our power infrastructure. As we embark on this journey, it is crucial to acknowledge the significance of sustainable energy development in our nation. For Nigeria, a country blessed with abundant natural resources, harnessing these resources sustainably is not just an opportunity but a necessity.
3. Sustainable energy development for us is not just ensuring a stable power supply. It involves creating an energy system that is resilient, efficient, and environmentally friendly. It’s about utilizing our resources in a manner that meets our current needs without compromising the ability of future generations to meet theirs. It is about fostering an energy ecosystem that supports economic growth, climate adaptability, and improved well-being of Nigerians.
4. Our journey to developing the sector infrastructure thus far has not been without its hurdles. We have grappled with issues which include unreliable gas supply and quality, inadequate generation supply, aging transmission network, inefficient distribution networks and recently a need for a diversified energy mix to achieve the Nigeria Energy Transition Plan ambitions of 30% renewable energy mix from 30GW by 2030.
5. Although faced with these challenges, our resolve to overcome these issues has never been stronger. Our vision is clear: to ensure a reliable, cost-effective, and environmentally friendly energy supply for all Nigerians.
6. To address the Nigeria power sector infrastructure challenges, the government has embarked on several strategic initiatives designed to enhance sustainable energy development both in the short-term and long-term aimed at transforming our energy sector.
• To address our generation capacity, we are committed to both enhancing current generating asset and investing in new power plants. Our focus is on harnessing the rich diversity of our natural resources, from hydro to solar and beyond. Recently, generation capacity to the grid has been expanded with the addition of 700MW newly commissioned Zungeru hydropower plant. We have also secured Presidential approval to defray legacy debts to gas companies to allow efficient gas supply to the power sector going forward and a payment mechanism to address Generation Companies debts to ensure necessary maintenance are resolved and evacuation capacity optimization. With this effort, we aim to not only increase our generation capacity but also improve the efficiency and reliability of our power supply.
• To ensure the upgrade of our transmission and distribution networks. We are actively working through the Presidential Power Initiative on expanding our transmission grid to ensure it can handle the increased load from our new generation sources. Simultaneously, we are supporting efforts targeted at modernizing our distribution networks to reduce losses and improve the quality of power delivered to consumers. In the last one-year, an additional 463MW transmission evacuation capacity has been added to the grid through this initiative. This was made possible through the signing of an accelerated performance agreement in Nov 2023 supervised by President Bola Ahmed Tinubu and German Chancellor Olaf Scholz. Additionally, the government has put in place the required framework to enable an injection of 1.5 million meters into the power sector through the World Bank Distribution Support Recovery Program. The Presidential Metering Initiative will ensure an additional 2 million meters will be procured annually for 5 years. This will ensure accurate billing, reducing revenue loss and improving cash flow for a more liquid power sector.
• To promote renewable energy penetration and off-grid solution, the Federal Government is about to commence the World Bank Distributed Access through Renewable Energy Scale-up (DARES) $750 million facility to increase access to electricity for 2.5 million people through deployment of solar home systems and mini grids to households, MSMEs throughout Nigeria, educational and health facilities. This is in addition to the recently concluded $550m Nigeria Electrification Plan which has bridged the energy access deficit by providing electricity to over 1.1 million households, MSMEs, educational and healthcare facilities in unserved and underserved rural communities. We believe that the global shift towards renewable energy is not just an environmental necessity but an economic one. Nigeria is blessed with abundant renewable resources, and we aim to continue tapping into these renewable sources to diversify our energy mix, reduce our carbon footprint, and ensure energy security.
• To ensure the sector’s policy and regulatory framework is aligned and enhanced, the government has commenced the development of a National Electricity Policy and Strategic Implementation Plan to provide a comprehensive framework for the nation’s electricity sector to support innovation, research, and development in the sector and chart a sustainable path forward in Nigeria’s electricity industry. The government believes that a supportive policy and regulatory environment are essential for sustainable energy development and the government is committed to creating policies that encourage investment, foster innovation, and ensure fair competition in the energy sector.
7. We are beginning to see some progress from the outcome of government’s initiative in the last one year. However, we will not relent until we have a resilient and efficient electricity sector that meets the needs of all Nigerians.
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8. Moving forward, the government looks forward to leveraging on the insights from the speakers and the participants of this conference. We would like to know your assessment of our ongoing initiatives to know where to reinforce our efforts and where to realign our approach. We would also like to hear additional opportunities and initiatives the government should be exploring to address the infrastructure challenges in the Nigeria Electricity Supply Industry.
9. Ladies and gentlemen, the path to powering Nigeria’s energy future is filled with challenges, but it is a journey we must undertake with determination and vision. Our efforts today will lay the foundation for a viable and sustainable power sector for all Nigerians. By addressing the sector’s infrastructure challenges and embracing sustainable energy development, we are not only meeting our current needs but also paving the way for a prosperous and resilient nation.
10. In closing, I would like to extend my gratitude to the organizers of this event.
11. I wish us all fruitful and insightful deliberations.
12. Thank you. God bless the Federal Republic of Nigeria!
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KEYNOTE SPEECH BY THE HONOURABLE MINISTER OF POWER, ADEBAYO ADELABU, OFR, FCA, FCIB, “POWERING NIGERIA’S ENERGY FUTURE” AT THE BUSINESSDAY ENERGY CONFERENCE ON FRIDAY, 7TH JUNE, 2024 IN LAGOS
