The Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki has put the capital expenditure (CAPEX) requirement of the Nigeria electric power sector in the next five years at US$23.9 billion.
He revealed this in a presentation to the International Conference on Private Sector Financing/Support of the Power Sector held at the Banquet Hall of the Presidential Villa, Abuja on Monday February 10.
He said the distribution companies (DISCOs) alone will require about US$1.8 billion in capital expenditure in the next five years for optimal performance.
He noted that the Transmission Company of Nigeria (TCN) requires about US$2.4 billion to increase power transfer capacity, make the network more stable and reliable, and improve efficiency of electric power transfer by reducing transmission technical losses; adding that it will also enable TCN to increase transmission capacity to 16843MW by the end of 2018.
He stated that US$11.7 billion is the CAPEX Funding Requirements for the privatised PHCN Successor Gencos to ramp up and expand capacity. This does not include the requirements of prospective green field and ongoing IPPs.
He said the breakdown as gleaned from the post-acquisition plans submitted by the investors are as follows: Ughelli Power Plc:US$ 604.0 M;Sapele Power PlcUS$ 394.0 M;Geregu Power Plc US$ 200.0 M;Afam Power PlcUS$ 850.0 M;Kainji Hydro US$456.0 M;Egbin Power PlcUS$ 1700.0 M and Green Field IPP US$ 7, 500 M
He further noted that “Gas Industry sources estimates that US$1.5 Billion will be required annually for the next 5 years if we are to address gas challenges in the power sector. “In other words a total of US$7.5 Billion is required in the next 5 years for gas infrastructure.”
He recalled the cardinal objectives of the Federal Government’s power reform program as:To reduce the cost of doing business in Nigeria so as to attract new investments through provision of quality and dependable power supply to the economy for industrial, commercial and socio-domestic activities;
“To improve the overall efficiency of the distribution, generation and transmission network;
“To provide Nigerians with basic and affordable infrastructure to enable them create employment for themselves;
“Creation of an electricity market that is private sector driven; and
“To attract massive investment across the value chain so as to expand electricity coverage.