Can Nigeria sustain power generation increase?
Nigeria’s power generation hit a new 3-year high of 5,105 megawatts of electricity at the close of last month. That’s according to the Minister of Power who says the target is to achieve 6,000 megawatts by December. Meanwhile, data from the Nigerian Electricity Regulatory Commission shows power Subsidy rose 151 per cent to 633.3 billion naira in the first quarter of this year. George Etomi, Founder of George Etomi and Partners joins CNBC Africa for more on these developments.
Thu, 08 Aug 2024 11:47:52 GMT
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AI Generated Summary
- The power generation in Nigeria has reached a 3-year high of 5,105 megawatts, with the government aiming to achieve 6,000 megawatts by December, signaling progress in the country's energy goals.
- The significant increase in power subsidies by 151 per cent to 633.3 billion naira in the first quarter of this year has raised concerns about the sustainability of this growth and its impact on DISCOs.
- Nigeria's journey towards sustainable tariff models is crucial for the long-term stability of the power sector, and stakeholders must carefully assess the implications of rising subsidies on generation costs and DISCOs' financial viability.
Nigeria's power generation hit a new 3-year high of 5,105 megawatts of electricity at the close of last month, a significant milestone according to the Minister of Power. The government's target is to achieve 6,000 megawatts by December, indicating progress in the country's efforts to enhance its power generation capacity. George Etomi, Founder of George Etomi and Partners, discussed these developments and shed light on the challenges and opportunities facing Nigeria's power sector. The rise in power subsidies by 151 per cent to 633.3 billion naira in the first quarter of this year has raised questions about the sustainability of this growth and the implications for DISCOs (Distribution Companies). Nigeria's journey to achieving sustainable tariff models is crucial for the long-term viability of the power sector. The increase in power subsidies is a notable concern, and stakeholders need to carefully analyze the impact on generation costs and the financial health of DISCOs. As Nigeria navigates its energy landscape, addressing these issues will be paramount in ensuring a reliable and efficient power supply for its citizens.
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