No Provisions for Disputed Mambila Project in 2024 Budget—Adelabu

December 15, 2023
Mambila project

By Adedapo Adesanya

The Minister of Power, Mr Adebayo Adelabu, has revealed that the federal government didn’t make any budget for the disputed Mambila project in the 2024 budget proposal as a result of the ongoing legal disputes.

The Minister disclosed this while addressing a joint session of the Senate and House of Representatives Committees on Power, chaired by Mr Enyinnaya Abaribe.

He also disclosed that the Zungeru hydropower plant, with a capacity of 700 megawatts (MW), stands at 99.8 per cent ready for operations and is set to commence functioning this year upon payment of concessionary fees.

Mr Adelabu noted the only thing left in the plant is the evacuation of power generated to the national grid.

“The hydropower plant is 99.8 per cent ready. It is almost completed, and we intend to start operation this year and commence evacuation to the national grid. Immediately concessionary fees are paid, and we will start full operation. So, we don’t have a problem with Zungeru,” he informed the probing lawmakers.

Speaking on the absence of the Mambila project from the 2024 budget proposal, he clarified that due to unresolved legal conflicts surrounding the project, no funds were allocated for it in the proposed 2024 appropriation bill.

“For Mambila, there is no provision for it in 2024. It isn’t a mistake. It is deliberate. It is under international arbitration. Until it is resolved, we can’t do anything about it,” Mr Adelabu stated.

Also, he lamented Nigeria’s power loss during the transmission stage, which according to him, is approximately 40 per cent, stressing the need for investments in the distribution chain to reduce this loss, proposing the unbundling of distribution companies (DisCos) and increased state participation in electricity distribution.

“The existing Distribution Companies, Discos, aren’t making new investments to change their old facilities to new ones. When you lose 40 per cent to evacuation, it is a big loss. So, we need to have enormous investments in the distribution chain,” Mr Adelabu emphasized.

He also disclosed plans for growing transmission facilities within the next two years to drive significant upgrades.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Leave a Reply

Infinity Trust Mortgage Bank
Previous Story

NGX Extends Rally by 0.22% as Infinity Trust Closes as Best-Performing Stock

Unlisted Securities Market
Next Story

Nigerian Unlisted Securities Market Closes Flat

Latest from General