- The federal government has signed a power purchase agreement
- The new agreement presided by the minister of power, works and housing, Babatunde Fashola, was between Qua Iboe Power Plant Limited (QIPP) and the Nigerian Bulk Electricity Trader Pic (NBET)
- The agreement is for a 540MW gas-fired power plant in Akwa Ibom
The federal government on Thursday, October 26, signed a mega power purchase agreement for a project in Akwa Ibom state.
The signing of the agreement which was presided over by the minister of power, works and housing, Babatunde Fashola, was between the new investor for the Qua Iboe Power Plant Limited (QIPP) and the Nigerian Bulk Electricity Trader Pic (NBET) for a 540MW gas-fired power plant.
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The project is expected to generate 540MW of electricity by 2021.
In addition, the federal government also, approved a Put/Call Option Agreement (PCOA) between the NBET and the ministry of finance.
The federal government has signed a power purchase agreement. Photo source: Facebook Aso Rock Villa
The agreement was also in arrangement with the project’s investors - the Qua Iboe Power Plant Limited (QIPP) which is jointly owned by the Nigerian National Petroleum Corporation (NNPC), Black Rhino Group, and Dangote Group.
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The federal government has signed a power purchase agreement. Photo source: Facebook Aso Rock Villa
Fashola while speaking on the agreement said the project is in line with federal government's plan to consistently grow Nigeria's ability to provide stable electricity.
The minister said this project will help provide electricity to Nigeria's over 180 million citizen's with about 50% of the population who are yet to be connected to the national power grid.
The agreement is for a 540MW gas-fired power plant in Akwa Ibom. Photo source: Facebook, Aso Rock Villa
Present at the event include, the Emir of Kano, Muhammad Sanusi II, Africa's richest man, Aliko Dangote among many others.
The agreement is for a 540MW gas-fired power plant in Akwa Ibom. Photo source: Facebook, Aso Rock Villa
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NAIJ.com earlier reported that the federal government said it plans to generate 7000MW of electricity by the end of 2017.
The vice president, Yemi Osinbajo said the plan will be executed over an 18 month period.
Osinbajo said the President Muhammadu Buhari's led administration is ever committed to the welfare of Nigerians especially with the provision of electricity to every party of the country.
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Source: Naij.com
