Fashola told the 24th monthly power sector stakeholders’ meeting hosted by the Transmission Company of Nigeria in Abuja on Monday that Nigerians consume about 300 million litres of diesel every month and that 75 percent of this volume was imported, while about 40 percent was used in generators to produce electricity.
He explained that about N24bn was being lost by the sector as a result of the importation of fuel on a monthly basis.
Represented by the Minister of State II for Power, Works and Housing, Suleiman Hassan, Fashola noted that Nigerians still consume about 300 million litres of diesel every month and most of this is used to power generators.
“About 75 percent is imported, putting pressure on scarce foreign exchange. Assuming 40 percent of the consumption is used for power generation at an average of price of N200 per litre, the electricity industry is losing N24bn every month largely to imported energy,” the report by a local newspaper, the Punch on Tuesday quoted Fashola as saying,
According to the minister, the amount used in importing fuel as an alternative source for generating power can be channeled for use in the electricity supply industry, as about 2,000 megawatts of power remained unutilized in the sector.
“There is about 2,000MW of electricity generating capacity that is unutilised. Therefore, the challenge of the moment before the industry is how to deliver the unutilised capacity to consumers, who are willing to pay for it and are already paying dearly for alternatives.
“Problems like this require creative solutions and we don’t have any time to waste. The N701.9bn payment reassurance programme is a creative solution that appears to be having the desired effect for stabilising the gas and generation end of the electricity industry,” he said.