HomeNewsNigeria close to putting transmission assets up for sale

Nigeria close to putting transmission assets up for sale

Nigeria has hinted that it will consider selling off its national electricity transmission company as the state-run entity struggles to supply sufficient power to the country, Power Minister Chinedu Nebo told Bloomberg.

Mr Nebo said he had already received interest from investors totaling US$20 billion for the assets of the only remaining government-controlled part of the power industry.

The Minister said the unbundling of the transmission company may start “in a few years”.

Renewable energy in Nigeria

The government will also focus on developing renewable energy projects to diversify its supply of electricity, he said.

Nebo said: “The government is very intent on making sure that the renewable energies kick off because we cannot continue to depend on only one or two means to continue giving electricity to our people,” the minister said, citing the planned 700-megawatt and 3,050-megawatt hydropower plants in Zungeru and Mambila, in central Nigeria.

The current transmission capacity of Abuja-based Transmission Company of Nigeria is 5,500 megawatts compared with an installed generation capacity of 8,000 megawatts, Nebo said.

This means that if generation companies were operating at full capacity, the grid would be unable to transmit all of the power to homes. The government wants transmission capacity to exceed 6,000 megawatts by 2016, Nebo said.