23 April 2013, Abuja – The Federal Government is to settle all outstanding severance payments of the Power Holding Company of Nigeria, PHCN, workers before the end of June, this year, according to Minister of Power, Professor Chinedu Nebo.
Nebo stated this at the Presidential Power Reform Transaction Signing ceremony in Abuja, Monday, where he also disclosed that power generation capacity has risen to 5,228megawatts, mw, with a peak generation at slightly above 4,500mw.
The Federal Government has already appropriated N45 billion in the 2013 budget for settlement of labour arrears. President Goodluck Jonathan approved N348billion for the same payment.
Nebo said at the event that the nation has an installed generation capacity of 6,000mw, while generation capacity has risen to 5,228mw, with a peak generation at slightly above 4,500mw.
But, he stated that despite the increase in power generation, the power sector needs a robust transmission grid.
“Currently, our transmission grid remains a weak link with a wheeling capacity of about 4,800MW,” he said.
Nebo noted that with the government’s policy to achieve 10,000mw in 2014 and 20,000mw in 2016, the need to expand the transmission capability is imminent.
“A total capital outlay $3.4billion is required up to 2016 to bring our transmission grid to evacuate all the generated power.
Government is working out the funding of Transmission Company of Nigeria’s (TCN’s) long term expansion plan for a mix which will include the Transmission Development Fund, International Development Banks and multilateral agencies,” he said.