Nigeria: Power Sector Collapse Imminent, Stakeholders Warn - Financial Daily News Site

Nigeria: Power Sector Collapse Imminent, Stakeholders Warn

Stakeholders in Nigeria’s power sector have warned that the sector faces imminent collapse as a results of a myriad of challenges.

Speaking with journalists yesterday, they highlighted the acute foreign exchange shortage in the country as a major challenge affecting the sector. This, according to them was because almost all the materials in the sector are being purchased in foreign currency, adding that the cost of maintaining their facilities is also in dollars.

“We hardly get enough dollars to be able to meet with the maintenance of our equipment and other obligations. This is one of the reasons the sector has been facing all manner of challenges and blackouts in recent time,” one of the stakeholders who pleaded to remain anonymous said.

The federal government had at the weekend explained that the drop in electricity generation was a result of the partial shutdown of the Oben gas plant for the repair of critical gas processing equipment.

It had also disclosed that the 14 reactivated independent power plants (IPP) across the country would produce off-grid electricity of 1,000 megawatts.

“We wish to notify the general public that the current dip in electricity generation is a result of the partial shutdown of the Oben gas plant to address the repair of critical gas processing equipment.”

“The incident, unfortunately, occurred at a time when other power plants on other gas sources are undergoing planned maintenance and capacity testing.

“We wish to notify the public that Seplat Energy Plc has mobilised equipment, material, and personnel to the site to expedite the restoration of normal gas supply to the affected power plants.