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Nigeria raises N300bn to close metering gap – Adelabu 

The Minister of Power, Adebayo Adelabu, has announced the federal government’s plan to secure funding ranging from N250 billion to N300 billion to close up the over 7 million prepaid metering gap.

Adelabu who disclosed this during a working visit to Eko Electricity Distribution Company (EKEDC) in Lagos said the fund will be raised through a N75 billion seed capital to be provided by President Bola Tinubu, along with additional debt capital injections from the Nigeria Sovereign Investment Authority (NSIA).

Chief Adelabu pointed out that customers complaints about the country’s power situation are legitimate and widespread, affecting every individual.

He acknowledged the thankless nature of working in the power sector, noting that despite optimization efforts, complaints about power deficits will always persist.

He therefore encouraged the players in the sector including the DisCos to be committed to persevering more in the face of criticism, viewing it as a motivation to drive further progress and meet the nation’s energy needs effectively.

The Minister of Power reflected on the multitude of complaints received in the past four to six weeks over the state of power in the country, and its difficulties, emphasized that his Ministry has maintained focus and determination in addressing all the critical issues such as liquidity challenges, lack of investment, infrastructural deficiencies, decay, human capacity limitations, and operational hurdles within the power sector.

The Minister, while revealing President Tinubu’s prioritization of the power sector to drive overall economic development, stated that a significant portion of the President’s Renewed Hope agenda focused on electricity, calling for collective efforts by all the players to fulfill promises made to Nigerians.
Recognizing the long-standing energy poverty endured by Nigerians, the Minister therefore unveiled the urgency to alleviate that burden and improve power delivery across the country within the next six months.
The Minister outlined a strategy to prioritize service provision to customers in higher billing bands (Band A and B) while gradually extending improved services to all segments (Band C and others) through strategic infrastructure investments.

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Having exceeded a specified threshold through improved collection efficiency and service quality, Adelabu has also unveiled a strategic plan to utilize EKEDC and Ikeja Electric (IE) as model Distribution Companies (DisCos) to pilot test the anticipated effective supply to be implemented sector-wide in the next few months, which according to him would serve as a standard for emulation by other DisCos.

EKEDC Chief executive officer, Dr. Tinuade Sanda, had earlier highlighted the company’s remarkable progress since privatization, saying that with huge investment, the company has the capacity to evacuate over 513MW, and with plans for further enhancement over the next one year.
She mentioned that EKEDC’s AT&C loss decreased from 45.37% in 2013 to 25.12% by December 2023, surpassing the 2024 target of 11.85% with an achievement of 18.34%. This improvement was attributed to substantial capital investments in infrastructure and expansion initiatives.
Sanda emphasized that upon acquisition, EKEDC’s monthly billing was below N3 billion, but currently exceeds N21 billion, maintaining the same tariff structure from 2022.
She said, “The company’s revenue has surged from an average of N1.7 billion monthly in 2013 to over N17 billion.
“Our customer base moved from approximately 306,000 customers 10 years ago, to 686,000, after we conducted a comprehensive enumeration process.
She explained that the recorded significant infrastructure growth over the years, with injection substations rising from 47 to 53 and distribution transformers expanding from 8,000 to 12,000+.

“In the past six months, EKEDC invested over four billion Naira in transformers, cables, and rehabilitating 352 feeders.
“We have also invested in network upgrades with modern equipment to ensure reliable power supply, even in adverse weather conditions.
“Despite a debt profile exceeding N131 billion in the last decade, including N36 billion owed by MDAs, EKEDC is committed to addressing liquidity challenges through targeted disconnections, including government entities.

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