Power Sector Collapse Imminent, Experts warn
Stakeholders in Nigeria’s power sector has warned that the sector faces imminent collapse as a result of myriads 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, is because almost all materials in the sector are purchased in foreign currency and the cost of maintaining 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,” a source, 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 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.
The government explained: “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. “We have been assured that the repair would be concluded this weekend and normalcy will be restored. While pleading with electricity consumers with the current state of supply, we wish to assure the general public that efforts are being made for a sustained improvement of supply across the country.”
The Manufacturers Association of Nigeria (MAN), recently, appealed to the Federal Governments to protect industries from collapse due to the erratic power supply in the country.
The Chairman, Kwara/Kogi branch of MAN, Bioku Rahmon, called for the expedited rescue of players and investors from the imminent orgy of unemployment and mass closure of companies due to the energy crisis.
He expressed concern that the manufacturing industry is yet to fully recover from monumental strangulations occasioned by the COVID-19 pandemic while describing the subsisting energy crisis as the exact antithesis of what the industry can’t contain at this time.
He lamented that electricity generated from the national grid has recorded no improvement and is hampering the activities of manufacturers.