. “What Band A customers pay is still cheaper compared to spending on self-generation;” What Adelabu said at the 2024 NOG Energy Week + his full speech
The annual spending by Nigerians on self-generated electricity, particularly fuelling and servicing of generators, has hit N16.5 trillion.
Platforms Africa reports that the Minister of Power, Adebayo Adelabu, who declared this at the ongoing NOG Energy Week in Abuja, maintained that this figure was a result of a research carried out for the year 2023.
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Though Adelabu, who said this while going out of his speech delivered to delegates at the conference, did not give further details on the research, he maintained, however, that the money covered spending on fuelling and service of generators.
He advocated upscaled investments in grid and renewable electricity sources, insisting that what Band A customers pay is still cheaper compared to spending on self-generation.
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Commending Tinubu for his support for the ministry of power, Adelabu said that the president has not looked back in his commitment to getting Nigeria to be Energy self-sufficient.
“We need to invest in renewable electricity in Nigeria. We have the abundance of sunlight; we have the wind in abundance in Nigeria, and with improved and uninterrupted supply to our Band A customers, improved investments in grid and these renewable sources will help tremendously in our journey to power self-sufficiency,” he said.
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“What Nigerians spend on self-geberation of power – on fuelling and servicing their generators- is N16.5 trillion according to a research that was carried out in 2023. Looking at this you will see that What Band A customers pay is still cheaper compared to this, despite having 24 hours uninterrupted supply,” he said.
On gas, Adelabu said that Nigeria already needed “five times the investments we have in gas-for-power,” maintaining that the country needed to take full advantage of funding and support from the global pool of investments on renewable space.
“Over $1bn investments have been placed into renewable energy sources by foreign lenders and institutions,” he declared, adding that his ministry under the guide and support of President Tinubu, is progressing in this regard.
Below is the full speech by the minister
HM Speech at the NOG conference: Navigating Nigeria’s Pathway to Achieving Energy Security Sustainably on the Journey to Net Zero
Distinguished guests, industry leaders, stakeholders, and esteemed colleagues, it is an honour to address you today at this significant Nigeria Oil and Gas Conference.
This platform has been remarkable over the years for engaging in captivating discussions, thought-provoking sessions, and deal-making opportunities while uniting the most brilliant minds, energy leaders, and industry professionals from across the globe.
As Nigeria continues to embark on an extraordinary journey towards net zero carbon emissions, it is crucial to ensure that a more just, affordable, and sustainable energy system is adopted to address the industry’s most pressing challenges and unlock limitless potential in achieving energy security and a secure, sustainable, and equitable energy transition for Nigeria.
I stand before you today as the Honourable Minister of Power, responsible for the development and sustainability of Nigeria’s power sector. The power sector in Nigeria consumes the largest share of the country’s domestic gas supply. I am here to advocate for increased investment in Nigeria’s gas development to unlock the full potential of our power sector and achieve the Nigeria Energy Transition Plan.
The domestic gas-power market accounts for 60% (approx. 700 MMSCF Daily) of the total domestic gas supply. This gas quantity currently sustains Nigeria’s 4GW average grid generation capacity.
In line with the Nigeria Energy Transition Plan vision 30:30, which seeks to achieve 30GW by the year 2030, our energy mix is projected to be 70% (or 21GW) thermal source (most likely gas considering the country’s gas potential) and 30% (or 9GW) renewable source.
The power sector would require over five times what the industry currently utilises from the domestic gas market to achieve our 70% thermal energy target with gas-powered generation. Additional investments would be needed to increase the country’s gas production to achieve this level of gas supply to the power sector without compromising the export obligations. To this end, I call on the investors here today to strongly consider the investment in the further development of gas production in the country, especially our abundant unexploited Non-Associated Gas reserves.
To briefly spotlight the Federal Government of Nigeria’s recognition of the need for adequate liquidity in the Nigerian power sector to catalyse the much-needed investments across the value chain. The government recently introduced a cost-reflective tariff for the sector’s most served grid-tied customer segment. In addition, presidential approval was granted to resolve the power sector obligations to defray legacy debts to generation and gas companies.
These actions speak to the government’s commitment to allowing efficient gas supply for the Nigerian power sector and ensuring there’s a clear line of sight for investors to recoup their investments in the country. I am confident that the Federal Government of Nigeria is committed to ensuring a viable and bankable power sector, and we are convinced that the industry is investment-ready.
To achieve our 30% Renewable Energy target, I urge you to consider the significant benefits of investing in renewable energy projects in Nigeria. Our country boasts abundant resources, particularly solar, wind, and hydro energy, providing a remarkable opportunity for sustainable growth. The renewable energy market has grown tremendously in the last decade, with over $1 billion leveraged by Multilateral Development Banks.
By channeling investments into these renewable sources, we can effectively meet our carbon emission targets while playing a crucial role in combating climate change.
As demonstrated by our recently completed $550 million Nigeria Electrification Project, investing in renewable energy helps reduce carbon emissions, enhance energy security, and support economic development.
Additionally, to complement the NEP, the $750 million DARES project would provide electricity to 2.5 million people in Nigeria by deploying solar home systems and mini-grids. These investments will propel Nigeria toward achieving its desired energy mix and transition targets.
As I conclude, I reaffirm our unwavering commitment to achieving net zero emissions by 2060. I sincerely thank all participants and stakeholders for your continued support and collaboration. Together, we can chart Nigeria’s course toward sustainable energy security and robust economic development.
I look forward to our fruitful deliberations. Thank you for your attention.
Platforms Africa