As the nation grapples with unending epileptic power supply, the total investment requirement to fix the energy sector for a 30-year period is now $1 trillion (N478 trillion). While the electricity infrastructure will cost over $600 billion, oil and gas infrastructure will require $400 billion.
According to the National Integrated Infrastructure Masterplan (NIIMP), the private sector (domestic and foreign) is expected to provide the funding.
For electricity, the bulk of the investment is required to increase generation capacity from 7GW in 2013 to 35GW in 2043 to build transmission and distribution networks
However, for the first five years, Nigeria will need to spend $23 billion in the electricity sector out of which $14 billion to $16 billion will be required to increase generation capacity from 7GW to 20GW and $3 billion to $5 billion to increase distribution capacity.
The investment requirements in the oil and gas sector are expected to increase the utilisation capacity of existing refineries to march the 445,000 barrels per day, building new refineries to meet local crude oil production capacity, building additional pipelines and increasing crude oil and natural gas production capacities.
Over the first five years, $12 billion is required to increase gas production from 8,000 mcfpd to 11,000 mcfpd; $16 billion is required to increase crude oil production capacity by 250,000bpd and $9 billion is needed to increase refining capacity by 300,000 bpd. Most of the investment requirements for increasing refining and crude oil production capacities will be funded by the private sector. Additionally, adequate upfront investments in human skills and capacities are required to deliver and operate the necessary infrastructure” the document, said.
Meanwhile, for several months now, the power sector has been performing at its lowest level, a situation that prompted the Minister of Power, Sale Mamman, to render an unreserved apology to Nigerians for the failure of government to ensure uninterrupted power supply.
According to the minister, the national blackout was due to the breakdown of Sapele, Afam, Olonrunsogo, Omotosho, Ibom, Egbin, Alaoji and Ihovbor generating plants. He said, however, that the Jebba Power Plant was shut down for annual maintenance.
