By Anthony Isaac
Journalists have urged the Federal Government to carry out a holistic review of the power sector privatization after 10 years of unmet expectations.
The Chairman, Power Correspondents Association of Nigeria (PCAN), Mr Obas Esiedesa who made the call in Abuja at the 2023 Annual PCAN workshop said the entrance of the private sector has not yielded the needed improvement in electricity supply.
Mr. Esiedesa pointed out that “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. Since then, expectations raised by the entrance of private entrepreneurs into the sector have largely remained unmet.
“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”, he added.
He expressed concern that with over 13,000 megawatts of installed capacity, “the industry is still struggling to deliver 4,000MW of electricity on a consistent basis”.
He explained that the workshop was intended to create an opportunity to build the capacity of journalists covering the Power sector.
“It was also intended to create an avenue for journalists to interact with industry players and regulators. It has in the past two editions, served as a consumer forum where issues bordering on service delivery are resolved”, he added.
The PCAN chief observed that the Electricity Act 2023 has prescribed far-reaching changes to how the sector has been governed in the past, especially the devolution of power to the states.
“We believe that the current position of the Act requires strong regulatory bodies to ensure safety and efficient management of the industry.
“That is why as a group, we welcome the new initiative by the Honourable Minister of Power, Chief Adebayo Adelabu, that has specifically targeted the distribution sector and the consumers.
“We believe that transmission and distribution networks remain the biggest obstacles to efficiency and effective electricity supply in the country.
“We call for sincerity on the part of the government in the implementation of this new initiative unlike what we have seen in the Siemens project and quite a handful of other projects”.
In his Keynote Address, the Minister of Power, Chief Adelabu explained that that the 2023 Electricity Act is a significant part of the country’s energy roadmap as it clearly signifies the present administration’s commitment to the transformation of the power sector as clearly stated in the agenda of Mr President as contained in the Renewed Hope Agenda.
“As you are aware, the Electricity Act has liberalized electricity generation, transmission and distribution. It has also empowered States, Organisations and even individuals to generate , transmit and distribute electricity. Under this Act, the 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)”.
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