@arkazaure was on @TVCconnect earlier today, and he had an extensive chat where he spoke on Electricity generation and the future projections of Infrastructural development in Nigeria.

A Thread

“All of the policies correct overtime and we find ourselves where we are.. However, I will say that investment in this sector has actually been misaligned; For instance, if you think way back in 1999, we may have had installed capacity of about 3-4 workable Giga watts of power.

Over time, the NIPP investments were done and we added 5 gigawatts and went on to privatise the hydro dams, we’ve seen increasing capacity there.
We’ll get to another point that from 3-4 gigawatts, we’ll then have installed a capacity of 15 gigawatts plus.

“However, what we did not do at the same time was invest in our transmission. This administration has come in and with the great works of the Ministry of Power and the TCN, have actually worked with a number of donor agencies to raise up to about $1.6 billion of finance-

-to go on the transmission side and many of these projects are on-going. But you can imagine there is a delayed impact on the improvement. We all recognise that we are struggling in the distribution sector, and that is where the the thrust and focus of the administration is now.

This administration looks to see how we can make these distribution companies more solvent and improve investment into that and see that finally this jigsaw puzzle and misaligned investment we can align them.

“This is because the goal should be to enable us make sure that if we can generate 15gigawatts we can transmit and distribute that and then build on that to generate 30,40,50 gigawatts that Nigeria as an industrialized and growing economy needs to have.”

On the issue of free electricity for 2 months for Nigerians, @arkazaure clarified the issue by saying that:

“there’s been quite a little confusion and miscommunication about this topic” and further spoke to shed more light on the issue and clear up the confusion.

First and foremost, I think all of the government, President Muhammadu Buhari always wants us to focus on things that will impact people’s lives especially those who are less well off in our society.

Engineer Saleh Mamman, looking at his work with NEC and within the government phase and there was a delay of 3 months for added tariffs increase. Now if you understand how tariffs work, Nigerians only pay for about half the cost of electricity they consume.

The other half is borne by the govt. so u can imagine if we are extending by the 3 months added tariff increase, the government is bearing all of that cost. That was a big palliative measure that the Power Minister communicated in terms of what NEC did.

Now in terms of the 2 months free electricity, as of the 10th of April the power ministry clarified that no decision had been taken on it yet. I will like us to leverage that communication officially from the power ministry that there has been no decision on it.

What I will say is we have a very intelligent group of leaders in Senator Ahmed Lawan and Femi Gbajabiamila, Hon Speaker and they are asking the right question which is; ‘In this difficult time how can we help Nigerians?’.

And this free electricity concept is something that is being discussed. What I will say is that the government in partnership with the National Assembly will make sure that anything we do actually impacts the right set of people.

If you imagine today, 60% of the electricity consumed in Nigeria is enjoyed by the top 20% of the population. So you can surmise that if you provide free electricity for 2 months, 60% of that benefit, if you do it in an unstructured manner, will go to the richest 20% of Nigerians

That is contrary to the objectives that the National Assembly in terms of this palliative measure want to do and is contrary to the administration’s position on catering for the poor.

So the current discussion is how do you intelligently design an intervention in the power sector to make sure it impacts the poor people, the people it should get to.

I will also mention that on the Engineer Saleh Mamman, the Minister of Power’s emergency measures press release on the 31st of March, he expressed that despite the fact that we are struggling,

the poor people and the areas that rural electrification agency is working on currently will think about the 80 million Nigerians that have no access to power.

Any intervention that we want to do is to go take solar owned systems, solar offgrid solutions, mini grid and pump money in those areas that actually target the poor. In summary what I am saying is there will continue to be palliative measures for Nigerians.

We are working with @nassnigeria to intelligently design those initiatives to reach the poor, including some of the work the @MinOfPower through Rural Electrification Agency is working on on off grid solutions that really provide power to that 80M Nigerians that don’t have power

Speaking on infrastructure and budget and investment in terms of economic challenge as well as what to expect post Covid-19, @arkazaure responded saying that “ this has been a government of infrastructure and that why having the great opportunity to work as a special adviser to-

-the president on infrastructure is of greater opportunity. What the President said as we work through managing and adjusting our budget, there’s two line items that he wants to make sure we protect.

1.Programme for the poor and any infrastructure related item that caters for the poor. He did mention well identification funding as well as health care for primary health care and other arrears that are infrastructure impact able.

2. Major critical infrastructure project, like if stopped now, will have a great impact on the economy later on. The government is working on many palliative measures, for example the CBN intervention for small and medium enterprises, #AhmadZakariOnTVC

the executive is working with the National Assembly on 500 billion Naira covid 19 fund, recently His excellency, the Vice President was directed under the leadership by the President leadership in- #AhmadZakariOnTVC

-sustainability committee that has been focusing on jobs and fertilizing the private sector ti really work on these environment. So it is safe to say that this is a difficult time and the President directions have been very clear. #AhmadZakariOnTVC

Protecting line items related to the poor, partner with the private sector to capitalize the economy, we continue to pray that the oil price will react to the reduction of 10 million barrels per day which was announced by OPEC this week. #AhmadZakariOnTVC

We hope that these measures will allow us have a budget which we need to do but let it be focused and protect the population and citizen that needs protection. #AhmadZakariOnTVC

The administration over time, has tried to drive private investments into infrastructure.
A typical example is the funds that allows for private sector to invest in roads and get tax credits. Dangote and NLNG are already on it. #AhmadZakariOnTVC

The Administration will continue to work with partners like the World Bank, AFDB, and others, to attract investments and grant loans to do infrastructure.

The administration is majorly focused on impacting the segment of the population that is vulnerable. #AhmadZakariOnTVC