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Gas Alone Cannot Achieve increase in Power Sector – Fashola



Fashola Minister of Works PlanThe Minister of Power, Works and Housing, Babatunde Fashola, on Thursday said in Lagos that gas alone could not bring the much needed increase in power supply in the country.

Fashola spoke as guest speaker through Chinedu Ugbo, acting Chairman, Niger Delta Power Holding Company (NDPHC), at the 2016 Annual Conference of the National Association of Energy Correspondents in Lagos.

The News Agency of Nigeria (NAN) reports that the theme of the conference is entitled: “Low oil price: Impact and the way forward”.

Fashola said, “It is not gas alone that will allow us to achieve incremental power”.

“It is our most reliable source of power, yes, but it is only one solution among many other underutilised solutions.

Mambila Power Station, for example, is likely to be our most defining in the road to incremental power, situated in Taraba State.

It will potentially add 3,000MW to the grid and yet this is a hydro-electric project, not gas.

Our ministry has recently publicised our energy mix and coal forms a large part of our target fuel source,” he said.

According to him, “I am pleased to say that the Nigerian Bulk Electricity Trading Plc (NBET) is working on a suitable tariff for coal-to-power that will form the basis of a Power Purchase Agreement (PPA)”.

“Although you may not see it, it is at the point of negotiating tariff with power providers that government, through NBET, and NERC, begins to protect the interest of consumers.

Solar and other renewable energies will also play a major role in our roadmap to incremental power.

We have recently signed 14 PPAs for the delivery of 1125 MW of solar power.

Other renewable energy projects such as the 10MW wind plant in Katsina, are also in various stages of completion,” the minister said.

Also speaking, the Group Managing Director of NNPC, Dr. Maikanti Baru, said that oil prices had dropped from $110 per barrel in June 2014 to the current level slightly above $40 per barrel.

“This decline has significantly impacted on government revenue earnings as oil sector accounts for approximately 90 per cent of the nation’s foreign exchange.

The huge drop in revenue earnings poses a grave danger for the adequate funding of the national budget.

A major challenge which, therefore remains, is securing the crude volumes to a level that ensures we deliver the revenue target fully aware of the fact that price is internationally determined.

We are, therefore, working assiduously to resolve the security issues so that we can guarantee volumes,” he said.

Baru, however, appealed to people to stop destroying the energy infrastructure, saying that destruction of critical energy infrastructure posed serious threat to the environment.

The News Agency of Nigeria (NAN) was established by the Federal Government of Nigeria in May 1976 to gather and distribute news on Nigeria and cover events of interest to Nigeria at the international level for the benefit of the Nigerian Media and the Public.


  1. yemite

    August 19, 2016 at 5:48 am

    Its always good to work in some1 shoe n know what’s d person actually facing b4 u can say anything against such person…mr minister if I can still recollect very well u are d1 said that “power sector can b fix within 6months for a serious government” Now here u ar in d serious government sector pls don’t Give us stupid excuse let d power b Fix. But b4 I go wil let u bliv that 2my best knowledge Jonathan’s time Life of Living is easy n better for poor masses than now….never think u can use hunger to control masses d way u did in Lagos. Nigeria is too large, u gonna loose in a close of eyes.

    • fd62kola

      August 19, 2016 at 12:37 pm

      hello i don’t know where u currently stay coz ur definitely not in Nigeria. Power supply has miraculously improved. As i speak to u, in my house we r currently trying to keep up with our phcn prepaid meter due to the sudden consistent supply of power. And I’m not the only one with this testimony, its everywhere.

  2. nnenne

    August 19, 2016 at 11:01 am

    What about Sola?
    I mean the sun is in our backyards.
    Perhaps we can establish sola plants / factories?
    Won’t it benefit us and the next generation?

  3. Tee

    August 19, 2016 at 1:04 pm

    Welcome, Ekabo! Some people don tap into coal since and even supply some top guys in Ghana. Naija ever so slow, and to think they are British guys has a lot to say ab African mentality. God need to deliver this continent loaded with abundance of raw materials /mineral resources but still prefer to import finished products. And for the people waiting for overnight miracle, una dooo! 9-5 mentality no be good thing o. Hmmmmmmm

  4. Tee

    August 19, 2016 at 1:07 pm

    Go behind the scene and see how things get done.

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