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Nigeria’s power sector set for boost as N122bn investment fuels 53 projects

Collaborative efforts by the Central Bank of Nigeria, Transmission Company of Nigeria, and power distribution companies target the completion of 53 power projects, adding over 1,000 megawatts to the country's wheeling capacity.

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In a bid to revolutionize Nigeria’s power sector, the Central Bank of Nigeria (CBN), Transmission Company of Nigeria (TCN), and power distribution companies are set to complete a series of 53 power projects with an estimated value of N122 billion by May next year.

During a tour of three projects located at Ojo, Isolo, and Oworonshoki Transmission stations in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, affirmed that the ongoing projects would contribute over 1,000 megawatts to TCN’s wheeling capacity upon completion.

Contrary to speculations about abandonment, Ajibade reassured the public that work is actively progressing and will meet the expected timeline. He acknowledged the challenges faced during the implementation but affirmed the commitment to the projects’ successful completion.

Tumba Tijani, Assistant Director/Head Infrastructure Finance Office at CBN, shed light on the financial aspect, stating that the apex bank, in August of the previous year, released a loan at a 9% interest rate for the project. The N122,289,344 fund, part of the Nigeria Electricity Market Stabilisation Facility-3, aims to address transmission/distribution bottlenecks, improve end-user supply, and unlock unused generation capacity.

Highlighting the progress, Tijani mentioned that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the diverse projects. These projects include the delivery of eight 150MVA power transformers, 19 1000MVA transformers, 60MVA transformers, re-conductoring of existing transmission lines (conductors & accessories), upgrading of existing 132/33KV substations, and the construction of 33KV line bays.

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