It was revealed Tuesday September 8 that N2.740 trillion was spent in the power sector by the federal government from 1999 to date, even as the Senate made a request for the audited accounts of the Ministry of Power and agencies in the Nigerian Electricity Supply Industry (NESI).
The administrations during the period were headed by former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua and Goodluck Jonathan.
The Permanent Secretary, Ministry of Power, Ambassador Godknows Igali, and Managing Director, Niger Delta Power Holding Company, James Olotu, made this known at the ongoing power sector probe by the Senate ad hoc Committee on Power.
The figures included N948 billion released to the Ministry of Power, N155 billion from subsidies and $8.3 billion (N1.6 trillion) released to the National Integrated Power Projects (NIPPs) from Excess Crude Account (ECA).
“Since 1999, the sum appropriated was N1.565 trillion and actual release was N948 billion including the value chain and all agencies.
“What was released under the Multi-year Tariff Order (MYTO) from 2009 to 2013 under subsidy was N155 billion to cushion the shock of the hike in tariffs,” lgali explained.
According to him, of the 79 generating plants that existed in Nigeria, only 19 were functional which he said generated only 1,750 megawatts (MW) at the time democracy was restored in 1999.
Prior to 1999, he also said the only investment made was for the construction of the Shiroro power plant.
“When democracy came, the government inherited a sector in which there had been no capital investment for a long time and no single engineer was recruited in 19 years.
“For over a hundred years until 2005 when the Electric Power Sector Reform Act was promulgated, power was in the hands of the government,” he explained.
Igali attributed the problem with the power sector in the country to lack of consistent investment in the sector by the federal government, saying investment in power must be consistent and gradual.
“I do know that despite government’s effort at funding power sector, the nation continues to experience epileptic power supply, however it takes time to stabilise,” he added.
Igali disclosed that in 1999 when Obasanjo took over, power generation stood at 1,750MW.
He said the capital-intensive nature of the sector had compelled the ministry to bring in the private sector, which he explained led to some marginal improvement in electricity supply.
“The funds spent on the power sector made it possible for the country to ramp up to 4,600MW from 1,750MW in 1999,” Igali told the Senate.
After listening to his presentation, the committee demanded the audited account of the ministry and records of all investments and expenditure in the sector.
