The Federal Government has approved the payment of assurance system of N701 billion to break the liquidity of the entire electricity value chain in the country, the Acting President, Prof. Yemi Osinbajo, has said.
Osinbajo made the fact known at a roundtable on Nigerian Renewable Energy in Abuja on Tuesday, adding that part of the amount which was approved by the Federal Executive Council had been released.
He said the second payment of the assurance system would soon be made to further boost electricity supply.
“We have mentioned several of the plans, the power sector plans and so many of those initiatives.
“The latest is to break the gridlock in the liquidity of the entire electricity value chain and so our payment assurance system of over N701 billion has been approved by the Federal Executive Council and in fact the first payment has been made. We are onto make up the second payment.
“We hope that we free up that value chain which has created several problems of its own and we hope that this injection will help.
“We are also looking at several other reforms in the sector hoping that the market can become self-sustaining, independent and run on its own and free up all of the private sector energy that is waiting to come into the market,’’ he added.
Osinbajo noted that, as a multi-stakeholder platform, the Nigerian Renewable Energy Roundtable should champion the new vision for renewable energy and ensure that they could translate theory to practice for the greater good of the people.
In his remarks, the Minister of Science and Technology, Dr Ogbonnaya Onu, said the ministry had been resolute in pursuing alternative energy sources.
According to him, focus on renewable energy will benefit the rural areas and help to create jobs as stated in the government’s Economic Recovery Growth Plan.
He said that diversification could only be successful in an environment of renewable energy system.
Majority of Nigerians lack access to electricity and where it is available supply is irregular.
The interest in renewal energy is expected to accelerate electricity generation and supply to the populace. (NAN)