The Central Bank of Nigeria is set to invest N104bn in Nigeria’s power sector to close the loopholes in electricity generation and distribution following the collapse of the national grid last week.
CBN injection of N104bn into the power sector would improve the linkage of infrastructure that exists between Transmission Company of Nigeria (TCN) and the nation’s eleven Distribution Companies (DisCos).
Meanwhile, the Federal Government, according to the Minister of Power, Abubakar Aliyu, is planning to improve the electricity situation in the country by adding 2,550 megawatts to the national grid.
Nigeria’s power sector has come under intense criticism after the national grid collapsed for the third time in 2022, causing power outages in several major cities of the country. The electric system suffered a depletion of 1,100MW in generation capacity due to a surge in gas prices, vandalism and water management at the hydropower plants. This electricity crisis has added to the struggles of Nigerians as alternative power sources, fuel and diesel have suffered a 33% and 163% inflation respectively in the last month.
The National Bureau of Statistics in its latest report said inflation rates due to these crises have increased from 15.6% in January to 15.7% in February.
The Minister of power disclosed that the Presidential Power Initiative has put measures in place to end the collapse of the national grid.