The Minister of Power, Chief Adebayo Adelabu, disclosed that the debts owed to power companies have reached a staggering N3 trillion. This total encompasses N1.3 trillion owed to Generation companies and approximately $1.3 billion owed to Gas Companies over the years.

During a press conference in Abuja, Adelabu, alongside heads of Parastatals in the ministry, addressed the complexity of the power sector situation. He pointed out that the accumulating debts result from unpaid subsidies. The Minister likened the dilemma to choosing between implementing cost-reflective tariffs or the government paying the substantial subsidy, which amounts to billions of Naira.

Adelabu, who expressed his concern during a tour of power plants operating below 20% capacity, pledged to confront the issues head-on to achieve incremental power supply within the administration of President Ahmed Bola Tinubu. He called for patience from Nigerians.

The Minister outlined results-oriented programs aimed at advancing the sector, including reconductoring existing aging Transmission power lines, speeding up intervention projects, improving distribution infrastructures, and accelerating metering acquisition programs. He also highlighted initiatives for revitalizing Discos, addressing gas supply issues to Gencos, fixing transmission infrastructure, and advancing Presidential Power Initiatives.

Adelabu emphasized the need for resolving outstanding debts, securing gas supply contracts, and achieving grid stability and capacity expansion. He outlined ongoing activities in the Ministry and its agencies to improve power supply, including the augmentation of hydro and thermal power plants, completion of projects like the Zungeru Hydro Electricity Power Plant, and resuscitation of abandoned hydro plants.

The Minister underscored the commitment to developing renewable energy options, revisiting abandoned projects, and completing infrastructure for various power plants across the country.

***Legislation Aims to Formalize Sector , Bridge Federal-State Coordination Gaps

Abuja, Nigeria – The House of Representatives Committee on Solid Minerals is advocating a 5% allocation of revenue from all mined minerals to host communities (Hostcom) as part of a legislative initiative to address challenges in the sector. Hon. Jonathan Gaza, Chairman of the House Committee on Solid Minerals, unveiled this proposal during a Public Policy Dialogue held in Abuja on Monday.

The proposed legislation, titled the “Nigerian Minerals and Mining Act (Amendment) Bill,” seeks to amend the principal Nigeria Minerals and Mining Act of 2007. Sponsored by Rep. Jonathan Gbefwi and Rep. Benjamin Kalu, the bill aims to formalize collaboration between state and federal governments to maximize sector benefits.

In his address, Chairman Gaza emphasized the importance of the bill in addressing key factors contributing to the stalemate in the Solid Minerals sector, including security challenges. He highlighted the establishment of the Mines Inspection and Environmental Agency, providing improved oversight of mining activities, with offices in every state for enhanced reporting and oversight.

The bill further proposes the creation of a Solid Minerals Development Company, with 75% ownership allocated to the private sector and 25% to the federation of Nigeria. Gaza highlighted the need to strengthen the bill and called for support in its solidification.

The Chairman stressed the significance of bridging coordination gaps between federal and state governments, empowering the Mineral Resources and Environmental Management Committee (MIREMCO) for effective joint oversight.

Gaza stated, “The bill further empowers the Mineral Resources and Environmental Management Committee (MIREMCO) to enable effective and joint oversight of the sector. It is clear that MIREMCO is poorly funded and lacks the resources it needs to support its activities. The Bill hopes to use MIREMCO as the facilitating tools for the government to work with State governments to secure their needs to ensure formalization of the sector.”

Highlighting the focus on community development and environmental protection, the bill proposes allocating 5% of the revenue from all mined minerals to host communities. Gaza emphasized the need for environmental remediation funding to ensure the proper restoration of sites after mining activities.

The Public Policy Dialogue served as a platform for stakeholders to actively participate in the legislative process and provide input for the bill’s adoption and implementation. Deputy Speaker Rep. Kalu, co-sponsor of the bill, underscored the potential of Nigeria’s mining sector for economic growth, job creation, and foreign exchange earnings. Despite challenges such as insecurity, inadequate infrastructure, and a shortage of skilled labor, the Deputy Speaker expressed confidence in the sector’s ability to contribute significantly to the nation’s GDP.