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Saturday, January 5, 2013

FG Develops Cost-reflective Tariff Structure For Power Sector

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FG Develops Cost-reflective Tariff Structure For Power Sector
Jan 5th 2013, 00:00

labaran-makuUPON proposing a power and gas financing package of about $1 billion and  $150  million  funding from the African Development  Bank (ADB) to further liberalise the power sector, the Federal Government said it has established a cost-reflective tariff structure that would reduce cost of power for majority of electricity consumers.

Minister of Information, Mr. Labaran Maku, who said that President Jonathan's Power Reforms programme had led to an all-time high 4,502 megawatts of electricity — expected to move up to about 7,000 megawatts by the end of 2013 — also observed that the power situation had improved significantly.

He anchored his statement on a survey carried out by the Federal Ministry of Information.

Maku added that this feat was achieved through the implementation of an integrated power sector reform programme hinged on the Power Roadmap and institutional reforms to involve the private sector in power generation, transmission and distribution.

"Under the Power Roadmap," Maku said, "the Federal Government is completing 10 new thermal power plants with some of them coming on stream in 2013 to boost the supply of electricity to all parts of the country. At the moment, there is an average of about 15 to 18 hours per day of constant power supply to different parts of the country.

"The rehabilitation of power generation and distribution infrastructure across the country is ongoing. Already work is ongoing at Kainji Hydro-power station to generate power at installed capacity while contract for the routine maintenance of Shiroro Hydro-Power Station has been awarded. There is improved gas supply to Geregu, Egbin, Afam V1 and Okpai power plants. The implementation of the National Integrated Power Project is being fast-tracked to ensure stability in power supply."

In the agriculture sector, according to the Minister, the Cassava Transformation Programme of government is aimed at making Nigeria (which is the largest producer of cassava in the world) become the largest processor of cassava products. He added that close to N300 billion would be saved in wheat imports annually because of the 20 percent cassava flour for bread.

Maku explained that "rice transformation" is being implemented in collaboration with the private sector in order to achieve self-sufficiency in rice production and end importation by 2015.

The Minister noted that though 2012 is a very challenging year, significant achievements have been recorded by the administration in project execution and policy implementation across the country, especially in infrastructural renewal and human capital development in the last one year.

The Federal Ministry of Commerce, he said, has secured a market for 2.2 million metric tonnes of dried cassava chips in China, adding that one million metric tonnes are already on their way to China.

He noted that the Cocoa Transformation Programme of government aimed at creating about 390,000 jobs in the sub-sector by doubling production, increasing processing capacity of factories, establishing and strengthening small and medium enterprises in the cocoa production, has taken off in full scale.

"The rehabilitation and restoration of the entire 3000 kilometre rail-line across the country," the Minister said, "is nearing completion. He also  stressed that the Lagos-Kano train services commenced on December 20, 2012, while work is almost completed on the Port-Harcourt-Enugu-Makurdi-Lafia-Jos-Gombe-Maiduguri rail-line, which is expected to come on stream in 2013.

Maku stated that the Federal Ministry of Trade and Investment had put in place a new trade policy, stressing that it was the first in 10 years, to boost domestic and international trade as well as to facilitate the inflow of investments into the country.

According to him,  the President's new investment drive has now made Nigeria the leading destination for Foreign Direct Investment (FDI) in Africa ahead of South Africa and Egypt, adding that Nigeria accounts for over 20 per cent of total FDI flows into the continent while over N6.6 trillion worth of investments had been attracted into the economy in the last two years.

The Minister revealed that a Memorandum of Understanding (MoU) had been signed with an American firm to establish power plants that would produce 10,000 megawatts as well as assemble locomotives for the revamped railway services in the country.

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