Following the worsening electricity supply to Nigerian consumers across the country, the Federal Government has disclosed plans to partner with more State Governments. This is in a bid to addressing the power shortfalls being experienced across the country.
This was stated by the Vice President, Kashim Shettima, during an interactive session with power sector stakeholders. The interactive dialogue/workshop was organized by the House Committee on Power and held in Abuja on Tuesday.
The Vice President who was represented by his Special Adviser on power, Sadiq Wanka, said the new scheme is to prioritize the power sector. He said this would be done through the creation of an enabling environment in the States. As well as at wholesale market levels, while paving ways for the private sector to lead across the value chain.
Shettima said, “The Electricity Act 2023 that was passed by the National Assembly and signed into law by President Bola Ahmed Tinubu seeks to overhaul the structure of the Nigeria Electricity Supply Industry.
“It proposes a structure that promotes more competition and greater scope for tailoring power solutions to local needs. While transitioning to a market structure that would attract much-needed investments and promote environmental sustainability.
“The wholesale structural shift that the Electricity Act 2023 (as amended) and the associated constitutional amendment usher in, means we need to double down on ensuring an orderly transition to the new national electricity market framework.”
In his remarks, the Minister of Power, Adebayo Adelabu, announced plans to establish 3 gigawatts of solar energy sources across the 25 States in the North and Southwest parts of the country.
“These projects are aimed at addressing the power supply challenges in the country, as well as an encouragement to State Governments to invest in power generation in their States,” The Minister said.
Adelabu stated that the major challenges of the power sector included; inadequate generation capacity and supply constraints. He also mentioned; inadequate transmission infrastructure, regulatory and policy constraints, inadequate financing and low investment due to lack of liquidity.
“These have resulted in energy deficits that have stifled growth. It has hindered industrialization and diminished the quality of lives of millions of Nigerians. This is when compared to their counterparts in the West World. The present administration of His Excellency, President Bola Tinubu in his Renewed Hope Agenda is determined to address issues in the power sector. And enhance the quality of life for all Nigerians.
“In his wisdom, he assented to the Electricity Act of 2023, which has regularized Nigerian electricity generation, transmission and distribution.
“We have investment proposals for establishment of 3-gigawatts solar energy sources across 25 States in the North and South-west. We are also encouraging State Governments to invest in power generation in their States,” the Minister added.
Speaking further, Adelabu alleged that activities of cartels were hindering the development of the power sector.
Making his contributions, the Speaker, House of Representatives, Abbas Tajudeen, disclosed plans to propose a law to improve the power sector. He said the new law would make it mandatory for the relevant Federal Government Bodies to consult the National Assembly and other stakeholders before fixing Electricity tariff.
“Accordingly, I will sponsor a bill to provide administrative procedures that entrench proper consultation and legislative review of the process for tariff setting in Nigeria’s electricity and other public services.
Tajudeen maintained that, “Having this consultation now appears to be an afterthought and goes contrary to the Electricity Act, 2024. Which mandates consultation with all relevant stakeholders in determining just and fair tariffs.”
source: BusinessDay
