Federal Government Budgets A Whooping N21bn To Ensure Stable Electricity in 2014

The Federal
Government is
to spend N20.6 billion to ensure steady supply of
power across the country in 2014.
The amount contained in the 2014 Federal
Government's 2014 budget proposal is 7.87 per
cent less than the N22.36 billion budgeted for the
same purpose in the 2013 budget.
Major projects to be undertaken with the fund as
proposed in the budget include the construction of
a 215 mega watts Low Pour Fuel Oil (LPFO)/Gas
power plant valued at N3.7 billion and a 10 mega
watts wind farm worth N1 billion.
The Federal Government is also proposing an
expenditure of N2.3 billion for the construction of
small and medium hydro power plants; while N461
million is proposed for renewable energy for
electricity generation.
The government also planned to spend N700
million and N1.8 billion to connect Gurara and
Bayelsa, respectively to the national grid in 2014.
The FG budgeted N1.4 billion for the Electrifying
Nigeria (Light Up Nigeria) project; N150 million for
advocacy and awareness for successor companies
and N1.7 billion to conduct feasibility studies for
coal-fired plants at Enugu, Gombe, Benue and Kogi.
Other capital projects to be undertaken in 2014
are: consultancy service for detailed engineering
design and project management/supervision
valued at N300 million; N250 million was projected
as take-off grant for the Hydro-Electric Power
Producing Areas Development Commission,
HYPADEC, Act, while N300 million was set aside for
Environment Impact Assessment and resettlement
study for the 700 mega watt Zungeru Hydro-
Electric Power project.
The National Load Demand study is to gulp N250
million; sustenance of power sector administrative
support structure — N150 million, while N1.75
billion was set aside for the purchase of
administrative buildings for the Nigerian Electricity
Regulatory Commission, NERC.
Despite the ongoing reforms in the energy sector,
which has led to the sale of the Power Holding
Company of Nigeria's successor companies among
other far reaching initiatives, the Federal
Government is to spend N136.99 billion on the
energy sector — Power, Petroleum Resources and
Mines and Steel Development — in 2014.
The amount represents 2.95 per cent of the total
projected expenditure in the 2014 budget and is
7.79 per cent less than the N148.56 billion
allocated to the sector in the 2013 budget.
Source: Vanguard

Sent From David Aniemeka