26 Nov

Daily Watch – Nigeria needs $40 billion to reach 20GW, FG spends N423 million on subsidy each day

  • Chief Executive Officer of the Enugu Electricity Distribution Company, Robert Dickerman has said that the country’s ambition to generate 20,000 mega watts of electricity would require about $40 billion (N9 trillion). Dickerman said this while speaking at the opening of the West Africa Power Industry Convention (WAPIC) in Lagos. He also said that Nigeria has the lowest power generation per capita in the world. “There is no expansion capacity, limited gas supply, poor transmission and distribution infrastructure. The NIPP generation auction is falling apart over fuel supply, poor planning and constraints and holding a capacity of about 5,000 mega watts” Dickerman said, but emphasized that “It is a challenging amount to raise but Nigeria now represents the largest potential energy growth market in the world”.
  • Latest figures from the Petroleum Products Pricing Regulatory Agency show that petrol subsidy costs the Federal Government N10.58 per litre. The PPPRA’s latest figures, based on average Platts prices for November 20, showed that the Expected Open Market Price of petrol, which is the summation of the landing cost plus the subtotal margins, was N97.58 per litre as against the approved retail price of N87 per litre. Figures from the NNPC show that an average of 40 million litres of petrol is consumed on a daily basis throughout the country, meaning the FG pays about N423.2 million to importers each day as subsidy on petrol.
  • A mosque at Yartabki near the headquarters of Funtua local government in Katsina state was bombed on Tuesday. Aminu Sadiq, the Katsina police spokesman, confirmed the incident, but said no one was injured. Sadiq said a suspect had been arrested, disclosing that two mobile cell phones and remnants of the explosives were also recovered.
  • The FG has established an Efficiency Unit (E-Unit) to monitor its agencies and ensure all expenditures are necessary and represent the best possible value for money. The Director, Press, Federal Ministry of Finance, Marshall Gundu, said that the E-Unit ​i​s domiciled at Federal Ministry of Finance and ​i​s expected to review all government overhead expenditure, to reduce wast​age​, promote efficiency and ensure quantifiable savings for the country. Gundu said the E-Unit would work across all Ministries, Departments and Agencies to identify and eliminate wasteful spending, duplication and other inefficiencies. It is also expected to identify best practices in procurement and financial management and share such knowledge with the MDAs to ensure its adoption.