Last week, the Minister of Budget and National Planning, Udoma Udoma, announced that the federal government has provided N40 billion ($127 million) to settle reconciled outstanding electricity bills of its ministries and agencies.
The minister said the move is part of a strategy to revamp the power sector, Premium Times reported.
Udoma said the step is imperative because the Economic Recovery and Growth Plan, which was predicated on the 2017 budget, would not be effective without a bolstered power sector.
Nigerian federal government bolsters partnership
According to media, the minister said that the budget is designed to expand the partnership between public and private sector as well as developmental capital to leverage and spur resources for growth.
He said that other key objectives to focus on were the ongoing critical infrastructure projects such as roads, railways, power and ICT, to have a quick positive effect on the economy.
"In order to do that, it is important that every segment of the power sector is commercialised so that the government itself is making sure to settle its bills to the Discos to make sure that power is effective.
"So, we are looking at N40 billion [$127 million] to settle some of the bills MDAs have in the power sector,” Udoma said.
Rural electrification projects
Minister Udoma also revealed that government will also invest N9.5 billion ($30 million) on rural electrification projects in federal universities in its quest for sustainable power,media reported.
He said that N10 billion ($31 million) has been earmarked for the construction of 3,050MW Mambilla hydropower project. Read more...
He added that N10.02 billion ($31 million)has also been put aside for the completion of power evacuation facility for 400MW Kashimbila hydropower plant.
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