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Foreign Development Partners declare Support for FGs Power Agenda

Foreign Development Partners declare Support for FGs Power Agenda

Foreign Development Partners have declared their support for the Federal Government Transformation Agenda in the Area of Power Supply.

The assurance was given at the end of a meeting between the Minister of Power, Adebayo Adelabu and the Foreign Development Partners in Abuja.

The Minister during the meeting, lauded the group’s developmental role in the power sector over time and urged them not to relent in their continued support.
He also briefed the partners on the Federal government’s transformation master plan, under the power ministry, to improve power supply across the nooks and crannies of the country.

Adelabu emphasized that the main problem of the sector is liquidity and funding, adding that the sector is supposed to generate -funding, if allowed to operate a commercial model whereby all the costs attributed to generation of power, transmission and distribution of power are recovered through the tariff while the operators are given a good mark up.
He however noted that the sector is not allowed to charge cost reflective tariff adding that, Government promised subsidy which is not a problem, but that is when government does its own part with timely release of money.

Adelabu also spoke on the pivotal role of the States in the power sector, adding that the DISCOs, as presently constituted, should be unbundled along State lines.
Responding, the development partners made up of representatives from the European Union (EU), United States Agency for International Development (USAID), United Nations Industrial Development Organisation (UNIDO), the World Bank, United Kingdom's Foreign, Commonwealth and Development Office (FCDO), among others, commended the Minister for the comprehensive diagnosis of the challenges in the sector including the government's transformation plan adding that they would need to further organise themselves in order to avoid overlap of functions.

They also assured Adelabu of continued support since his briefing has given a clear direction on how to resolve some of the issues in the power sector value chain.

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