Power Intervention Fund Jumps to N2.9trn

The Federal Government’s intervention fund to the electricity distribution companies has risen to N2.9trn, from N2trn recorded as of May this year.

This indicates a 45 per cent increase over the period.

By estimation, the N2.9trn is the total funding extended to the sector since privatisation in 2013.

The Director-General, Bureau of Public Enterprise, Alex Okoh, in an interview, said there was an approval of a fresh 2.3 billion Euro loan for the transmission and distribution arms of the sector.

Prior to the 2.3 billion Euros, the last one was the $500m by the World Bank to improve its electricity distribution sector in May.

“There are a lot of interventions going in that regard.  There is 2.3 billion Euros for the transmission and distribution so that we can wheel more power for consumers,” Okoh said during the interview.

In November 2013, the Federal Government unbundled the Power Holding Company of Nigeria, PHCN and sold 18 utility firms to private investors.

The Federal Government said it spent a total of N1.7trn on the sector from 2017 to 2020.

An addition of N1.7trn as of 2020, plus $500m WB loan and the fresh 2.3 billion Euro, brings total funding to N2.9trn.

A total of financial investments so far made in the energy sector since privatisation can be said to have hit well over N2 trillion.