FG to partner private companies on coal power generation

THE Federal Government has said that it will make coal sites available to “serious-minded” power companies operating in Nigeria, with a view to improving power generation in the country.

Minister of Mines and Steel Development, Dr. Kayode Fayemi, said this in Tarfa, Kaduna State, during a facility tour of the African Steel Mill Complex, where he kick-started his tour of mine fields across the country.

Coal plays a vital role in electricity generation worldwide. Recent report indicated that coal-fired power plants currently fuel 41 per cent of global electricity, and in some countries, coal fuels a higher percentage of electricity.

Fayemi noted that government had received numerous requests for coal sites by many business concerns and operators in the sector, adding that the Federal Government’s main priority for now, was how to use its coal to aid power generation in Nigeria.

He said the ministry would give priority to committed power companies as far as coal sites were concerned.

The former Ekiti State Governor said, “we want to package our coal for use in power generation. We will give coal sites to serious-minded power companies”.

While stressing the importance of power to the development of critical sector of the economy, the minister said his Ministry in collaborate with the Ministry of Power, Works and Housing would encourage power companies with demonstrable commitment to secure coal sites to boost power generation.

Dr. Fayemi, who decried the high cost of steel products in the country, urged steel manufacturing companies to consider reducing the cost of the their products following the availability of foreign exchange.

He also urged them to scale up their capacity and take advantage of the huge steel market in the country, assuring them of government support for their growth.