A Review of the Nigerian Energy Industry

Govt. license not required to generate electricity less than 2MW – Minister

*Babatunde Raji Fashola, Nigeria’s minister of Power.

Oscarline Onwuemenyi

12 May 2018, Sweetcrude, Abuja – The Minister of Works, Power and Housing, Mr. Babatunde Fashola, has said interested investors are free to establish commercial independent power generation plant or solar power plant without seeking a license from the Federal Government.

Fashola, who made the remarks while fielding questions from journalists in Dutse during his two-day duty tour to Jigawa State, noted that the Federal government was encouraging private investors to invest in the generation and selling of power to the public.

He explained that the policy was part of the government’s plan to liberalise the power sector and encourage more private individuals including state governments to invest in embedded power generation to serve particular areas and towns.

He said, “Any interested individual or company can set up power generation from 2 megawatts (MW) downwards and sell it to the public without requesting for any license.

“We are encouraging people to set up small power generation companies and sell it according to their capacity, not necessarily going for a big project that requires a huge amount of money and expertise.”

Speaking of the delay to start various private solar power generation projects in the country, particularly those investing in Jigawa State, the minister explained that the investors insisted on selling the power to the government.

He, however, added that the guideline and the cost they proposed were not attainable.

“But we are still negotiation with them and as soon as we reach an agreement, the investors will commence work at their sites.

The minister is in the state to inspect the ongoing construction of 76 units of houses in the state by the Federal Government under the National Housing Project.

He is also expected to inspect the ongoing rehabilitation of 33 km Hadejia-Nguru federal high way, which was awarded since 2010.

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