…Assures of rural electrification, gas supply
The Federal Government has said that the National Integrated Power Projects (NIPPs) would become individual companies by 2014.
The new minister of power, Barth Nnaji, made the disclosure Monday in Abuja as he assumed his first day in office at the Ministry of power.
Meanwhile, Nnaji also assured that the government has a clear and workable solution for rural electrification as well as gas supply for the sector.
The NIPPs are power projects in the generation, transmission and distribution sectors meant to fast track capacity improvement of Nigeria’s power industry. Some industry observers have expressed concern as regards what the fate of the entities would be when power becomes stable in 2014 as promised by the government.
Nnaji said, “By 2014, when we expect more power, each NIPP plant will be treated as a company of its own just like you have Egbin and Shiroro. So the NIPP plants will also become individual companies. We will talk to the regulatory commission to issue licences to these companies, otherwise it becomes difficult to sign say power purchase agreement and then we have to determine, at that time, whether they will be concessioned or privatised.”
The minister noted that the government would ensure that urban poor and rural dwellers did not feel the impact of increased electricity tariffs, adding that subsidies would continue to be in place until power became stable.
As regards gas supply to the power plants, Nnaji informed that in terms of quantum, there was adequate gas in the country.
He however added, “It’s just about getting the gas to all the plants, particularly gas going to plants in the western axis. There is work ongoing to ensure that the line that will ensure reliability is standardized. I can’t tell you right here the exact date of expected completion.”
