In an effort to provide reliable and regular supply of electricity to households and businesses in the country, the Nigerian government is set to explore regional energy potential aimed at transforming the power sector.
Nigeria’s Minister of Power, Adebayo Adelabu, disclosed this at the 3rd Annual Workshop, organized by the Power Correspondents’ Association of Nigeria (PCAN), themed “Resolving Nigeria’s Power Crisis: The Implication of the Electricity Act, 2023”.
The minister described the theme as quite apt, considering the Nigerian President Bola Ahmed Tinubu’s desire to provide a regular supply of electricity across the country by liberalizing the power sector through the enactment of the Electricity Act, 2023.
According to him, the Electricity Act, 2023 is a significant part of the country’s energy roadmap, as it signifies the present administration’s commitment to the transformation of the power sector as clearly stated in the “Renewed Hope” agenda of Mr. President.
READ MORE: President Tinubu signs Electricity Act 2023 into Law
It will be recalled that on June 9 2023, President Tinubu assented to the Electricity Bill thereby making it an Act, empowering states, companies, and individuals to generate, transmit, and distribute electricity.
“Taking all the above into consideration, especially with the liberalization of the sector, Nigerians will soon start to experience the objective that led to the Act, which is to improve power supply across the country.
“As you are aware, the Electricity Act has liberalized electricity generation, transmission and distribution. It has also empowered states, organizations and even individuals to generate, transmit, and distribute electricity.
“Under this Act, a state government can issue licenses to private investors to operate power plants and mini grids within the states.
“Private investors can also obtain licenses for generation, transmission, system operations, trading, distribution, and supply.
“The Act also encourages the integration of renewable energy technologies into the existing grid system while licensees are expected to meet renewable energy obligations as stipulated by the Nigerian Electricity Regulatory Commission (NERC).
“Among others, the Act also introduced a mechanism for incentives for investment in the sector. Such incentives include feed-in-tariffs, which guarantee a fixed price for renewable energy fed into the grid and tax incentives for investors.
“In order to ensure a level playing field for all players in the sector and prevent anti-competitive practices, the Act also provides clear guidelines for the licensing, monitoring, and supervision for market participants.
“Furthermore, the Act guarantees assets protection by allowing investors to sell or transfer their undertakings in the event of revocation of licenses or compensation in the event of takeover of such undertakings,” the minister of power explained.
He affirmed that the totality of the re-enacted Electricity Act has changed the entire landscape of Nigeria’s power sector.
Speaking earlier, the Chairman of Power Correspondents’ Association of Nigeria (PCAN), Mr. Obas Esiedesa, said the workshop, from inception, was intended to create an opportunity to build the capacity of journalists covering the power sector, as well as create an avenue for journalists to interact with industry players and regulators.
“On November 1, 2013, the Federal Government handed over the distribution and most generation assets to the private sector, marking the beginning of private investment into the Nigerian Electricity Supply Industry.
“Ten years down the line, the time has come for the federal government to take a holistic review of the entire power sector privatization, not necessarily taking away the assets from operators, but finding solutions to the huge challenges facing the industry.
“It is worrying to note that with over 13,000 megawatts of installed capacity, the industry is still struggling to deliver 4,000MW of electricity consistently.
“That is why as a group, we welcome the new initiative by the Minister of Power, Chief Adebayo Adelabu, that has specifically targeted the distribution sector and the consumers,” the association’s chairman said.
He noted that transmission and distribution networks remain the biggest obstacles to efficiency and effective electricity supply in the country, calling for sincerity in the implementation of the new Electricity Act, 2023.
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