Dons Eze
N2 TRILLION POWER PROJECTS STALLED
There are power projects worth over N2 trillion that have not been completed or simply awarded but yet to start in different parts of the country.
The Nigeria’s power sector has, over the years, appeared to defy solutions aimed at providing sufficient and sustainable electricity supply to the country’s over 230 million populace.
Experts believe that no tangible progress will be made in Nigeria’s crave for industrialisation and job opportunities without sufficient electricity supply.
With power generation stuck at an average of 4,500 megawatts, the uncompleted power projects worth over N2 trillion are spread across the country.
Investigations showed that the uncompleted projects are mostly domiciled in the generation and the transmission sub-sectors.
Experts who spoke on the poor performance of the electricity sector despite frequent allocation of resources cited systemic issues as well as lack of transparency and accountability as factors responsible for prevalence of abandoned power projects.
Recall that the power sector was allocated a total sum of N2.087 trillion in the 2025 Appropriation Bill presented to the National Assembly last December by President Bola Ahmed Tinubu.
The projects:
The National Integrated Power Project (NIPP) was conceived in 2004 by President Olusegun Obasanjo’s administration to address Nigeria’s power supply deficit with a view to boosting electricity generation, transmission and distribution infrastructure.
The NIPP, primarily funded from the Excess Crude Oil Account, was initially allocated about $2.5 billion; with subsequent funding that shot the total to over $8 billion.
Under phase one, the NIPP was mandated to build 10 gas-fired power stations with a combined installed capacity of 4,528.5MW.
While seven of the plants have been completed, two remain under construction, including the Egbema Power Plant in Owerri, Imo State and Gbarain power plant in Bayelsa State.
For instance, the Egbema Power Plant, initially expected to be completed in 2017, but due to various issues, including contractor changes and funding problems experienced undue delays.
Once completed, the plant is expected to contribute significantly to the country’s power supply.
On the other hand, the 252 MW Gbarain-Ubie Power Plant was expected to be ready by the end of the first quarter of 2017, but has remained in the pipeline.
The second phase of the NIPP, announced in 2015, was to fund 16 hydropower generation projects, mainly in the northern part of Nigeria. One of the projects, the Mambilla Power Plant, remains a subject of conjecture.
Similarly, the 215MW Kudenda Power Station, initiated by the administration of late President Umaru Yar’adua, has defied various dates of commissioning. A new date of 2025 has been fixed for its completion.
Another uncompleted project is the second phase of the $38.7 billion Nigerian National Petroleum Company Limited/Nigerian Agip Oil Company (NAOC) Joint Venture Okpai Independent Power Plant Project in Ndokwa East Local Government Area of Delta State.
Also, the 360MW Gurara II hydropower was approved in 2019, but despite the Exim Bank of China agreeing to lend the country $1 billion for its construction, the work has not been completed.
The project involves the construction of a hydroelectric power station on the Gurara River in Kaduna State, Nigeria.
Again, the 10MW Katsina wind farm project has continued to linger without contributing to the national grid or the communities it is supposed to cater for.
Initially conceived in 2005 by the Katsina State government, the project was taken over by the Federal Government in 2007, and despite being scheduled for completion in 2012, the project has experienced numerous setbacks.
Several factors have contributed to the delays, including changes in project management and funding issues.
Recently, the Katsina State government announced plans to revamp the project, which has been dormant for nearly two decades.
Transmission projects
Data from the Transmission Company of Nigeria (TCN) showed that over 334 projects initiated since 2007 are yet to be completed despite receiving over N125.2 billion and Development Finance Funding through the World Bank, African Development Bank, the French Development Agency (AFD) and others, up to $1.7 billion in the last few years.
A document by the TCN gave various reasons for the delay in completing the projects that are estimated at above N2 trillion.
The projects include those financed by the Japan International Cooperation Agency (JICA), the Siemens, African Development Bank (AFDB) and the French Development Bank.
The document, which was produced in 2020, had proposed 34 projects for 2020, 61 for 2021, 21 for 2022, 180 for 2023, while completion dates for 38 projects were not specified.
Despite the document, produced four years ago, one of the projects initiated in 2007 and billed to be completed by December 2020, the provision of 2x60MVA, 132/33kV substation at Kafanchan in Kaduna State, progressed at just one per cent in 2024.
This was contained on the Eyemark website created by the Federal Ministry of Budget and Economic Planning to monitor the progress of government projects.
The platform also showed that the cost of the project is now N277.22 million from the N72,191,984.1 the TCN showed as its cost.
Other projects:
The projects that are prominent on the list that would have expanded Nigeria’s electricity market include the Ikorodu-Odogunyan-Shagamu 132kV DC transmission line that was initiated in December, 2009; Nnewi 2×60 MVA 132kV substation in Anambra State initiated in April, 2006; 2x 330KV line bay extension in Kaduna, Jos and Onitsha, initiated November and the Kano-Katsina 330KV DC transmission line.
Others are the construction of 2x60MVA, 132/33kV substation at Malumfashi, Katsina State, instituted in 2011; the 2x60MVA, 132/33kV substation at Aboh Mbaise and 2x132KV line bays extension in Owerri, Imo State, which was awarded in 2009; another 2x60MVA,132/33KV substation at Mpu, with 2x132kV line bay extension at Nnewi, Enugu State; 2X60MVA substation at Ede, Osun State; 2x 60MVA 132/33KV substation at Egbe and 2x132KV line bays extension at Omu-aran in Kogi State, among others.
Some projects were established for political reasons – Minister
Efforts to know what the Ministry of Power is doing to address the situation yielded no result as several phone calls and text messages to Bolaji Tunji, spokesperson to the Minister of Power, Adebayo Adelabu, went unanswered.
When contacted, the Director of Information and Public Relations for the ministry, Florence Dibiaezue-Eke, stated that she was unaware of any uncompleted projects under the ministry’s purview. She said she would need to consult with the director responsible for projects to provide further clarification.
Last year, the Minister of Power, Adebayo Adelabu, said some of the uncompleted power projects across the country were politically established by past administrations.
“We’ve committed the country’s money but not getting the benefits of these investments. We’re not optimising such projects. During my time, we will not tolerate that,” he had said.
He had also said the ministry had resolved to complete a reasonable proportion out of the over 100 ongoing uncompleted TCN projects for the improvement of transmission.
Accountability, public, private partnership key to success – Experts
Kunle Olubiyo, President of the Nigeria Consumer Protection Network, in a chat with our reporter, raised concerns about project conceptualisation in Nigeria, particularly in the energy sector.
According to him, while projects design and delivery globally are aimed at achieving intended objectives, in Nigeria, many projects are often designed to facilitate pilfering of public funds.
He said at the generation level, critical issues like the lack of a spinning reserve persist despite the availability of funds that could have been allocated to address such challenges. This oversight, he said, reflects a systemic neglect of pressing infrastructure needs.
Olubiyo also said the prevalence of abandoned projects had left many states across the country severely underserved in terms of energy supply.
He said even when those projects are completed, they often fail to meet the current energy load demand due to their outdated designs and limited capacity.
He said government funding alone would not suffice to address the challenges, calling for partnerships with the private sector and commercial banks.
Also speaking on the issue, the convener of PowerUpNigeria, an Electric Power Consumer Rights Advocacy Group, Adetayo Adegbemle, said most of those abandoned projects are inherently unsustainable even if funded by international development organisations.
He cited the Siemens power project initially projected to increase Nigeria’s electricity generation capacity to 15,000 MW by 2023.
He alleged that the project was designed to enhance the reputation of Siemens Industries in Germany rather than serve Nigeria’s interests. He also criticised the much-publicised delivery of 10 transformers under the project, noting that not all have been installed, and questioned why Nigeria could not independently procure such equipment if needed.
