2018: The Year of Infrastructure
– The Federal Government has so far released 1.2 Trillion Naira released for capital expenditure in the 2017 Budget, which was signed into law in June 2017. (Recall that the total amount released for capital projects in the 2016 budget was 1.2 Trillion Naira — a record at the time).
– The Federal Executive Council (FEC) last week approved a framework for mobilising additional investment to expand distribution capacity, to enable consumers access 2,000MW of power currently available in Nigeria but not distributed because of capacity issues. Nigeria can today generate 7,000MW of electricity. Following extensive grid expansion in the last two years, the Transmission Company of Nigeria (TCN) now has the capacity to wheel the 7,000MW. Bottlenecks however exist at Disco level, with only 5,000MW of distribution capacity, hence the need for the expansion.- On January 4, 2018, President Muhammadu Buhari commissioned the first Inland Dry Port in Nigeria – the Kaduna Inland Dry Port, in Kakuri, Kaduna State. Read the President’s Speech at the commissioning, here
– Also on January 4, President Buhari commissioned 2 additional locomotives and 10 additional passenger coaches for the Abuja-Kaduna standard-gauge rail service. Read the President’s Speech at the Commissioning, here
– The 12 stations on the Phase 1 corridor (Blue and Yellow Lines) of the Abuja Light Rail Transit system have now been completed. Also, the Federal Capital Territory (FCT) Administration has taken delivery of 3 coaches meant for trial operations of the Light Rail — the first to be completed and operational in West Africa.
– Still on Rail, work is ongoing on the Lagos-Ibadan leg of the standard-gauge rail line between Lagos and Kano, and is expected to completed by December 2018. (The first section, Abuja-Kaduna, was completed and commissioned by President Buhari in 2016).
– On January 8, the Ministry of Power, Works and Housing announced that its Incremental Power Journey has recorded the following milestones:
-/ Generated power has gone up to 7,000 MW in 2017 from 3,000 MW in May 2015
-/ Transmission Capacity now at 6,900MW in 2017, from about 5,000 MW in May 2015
-/ Peak Distribution now averaging 5,000 MW in 2017 from 2,690 MW in 2015.
– In 2018, an additional 1,600MW of power is scheduled to be added to the national grid, including the following:
– In 2017 the Federal Government raised 100 Billion Naira in its debut Sukuk Bond. The proceeds of the Bond have been allocated to major road projects across the six geopolitical zones – each zone gets 16.67 Billion Naira. Another reason why 2018 is the Year of Infrastructure!
– The Federal Roads Maintenance Agency (FERMA) has commenced repairs of damaged sections of federal roads across the country. Citizens can tweet pictures of bad roads and tag @FedRoadsNGR (on Twitter) for prompt attention.
– British entrepreneur Richard Branson writes on the work the Rural Electrification Agency (REA) is doing in partnership with the World Bank and Rocky Mountain Institute to unlock Nigeria’s mini-grid energy market: “If you are an impact investor that wants to make a difference in energy access next year, I’d suggest a trip to Nigeria.” Read the article here