electricity debt intervention fund

FG To Provide N40bn For MDA Electricity Debt & N10bn for Hydro-Power Project

The Federal Government on Tuesday in Abuja said it has provided N40 billion to settle reconciled outstanding electricity bills of its ministries and agencies.

Premium Times reports that according to the Minister of Budget and National Planning, Mr Udoma, in a statement, while addressing The Situation Room, a group of civil society organisations the gesture is in line with the Federal Government’s commitment to restructure the power sector.

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He said that the budget was designed to expand the partnership between the public and private sector as well as developmental capital to leverage and spur resources for growth.

“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 to settle some of the bills MDAs have in the power sector.’’

He also revealed that the Federal Government has plans to invest N9.5 billion on rural electrification projects in federal universities in its quest for sustainable power.

He added that N10 billion had also been earmarked for the construction of 3,050-megawatt Mambilla hydropower project.

He also added that N10.02 billion had been put aside for the completion of power evacuation facility for 400-megawatt Kashimbila hydropower plant.

Udoma explained that these steps were imperative because the Economic Recovery and Growth Plan, which was predicated on the 2017 budget, would not be effective without a bolstered power sector.

Busayo Oladejo

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