More than $64.63 million electricity debts owed Federal Government by international customers in Benin Republic and Niger Republics has been recovered.
Mr. Babatunde Raji Fashola, Minister of Works, Power and Housing, who stated this at the 21st monthly power sector operators meeting in Asaba, Delta State capital, declared that the Nigerian Bulk Electricity Trader, NBET, would work out the modalities for distribution of the recovered funds to different beneficiaries.
Fashola also announced plans by Federal Government to release N37 billion to procure more meters for supply to the customers to address such challenge.
“There are other challenges that we must also overcome together: estimated billing and metering. And in this regard, we anxiously await the Regulation from NERC to open up meter supply Business.
“Similarly, I am happy to report that following the approval of the Federal Executive Council, FEC, earlier in the year, the dispute over meters supply contract that started since 2003, was resolved by a Court approved settlement on Thursday the 9th day of November 2017.
“This means that there will be N37 billion available for meter supply by the contractor to DISCOs who want to partner and can reach their independent agreement with the contractor. While we await the regulations by NERC, a lot of preparatory work can be done,” he said.
In the area of rural electrification, Fashola said REA completed the guidelines for the operation of the rural electrification fund that will help vulnerable groups and communities gain access to funding to support their electricity development programme.
According to him, “by way of explanation the Rural Electrification Fund was created by Section 88 of the Electric Power Sector Reform Act (EPSRA) of 2005 to promote support and provide rural electrification access.
“The fund will provide a partial single payment capital subsidy and or technical assistance to eligible private Rural Power Developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity. Those who will be served are the unnerved and underserved rural communities.”
The minister said, “What they are likely to get are minimum amounts of $10,000 (N3.5m) and Maximum amounts of $300,000. (N106m) or 75% of project cost whichever is less,” adding, the REA will publish details of guidelines and eligibility.
On improved power supply being experienced in the country, Fashola recalled that, “These are only headline items of development that characterize the progress we are making month after month, especially since March 2017.
“They do not represent, or pretend to fully report, all of the progress that is going on at distribution levels, which is highlighted by the New Asaba Mains 2x15MVA injection sub-station completed and commissioned today by Benin DISCOs.
“This is expected to improve service to Okwe, Akuebulu, Jarret, Ogbeofu, Osadebe Way, Okwe Housing Estate, Oduke, New Jerusalem, Malbovil and more by reducing load shedding and increasing the hours of supply.”
