The Ministry of Power says it is developing a National Electricity Policy Coordination Framework to align Federal and State Government actions and strengthen investors’ confidence in the power sector.
The Minister of Power, Mr Adebayo Adelabu, disclosed this at the 20th Anniversary of the Nigerian Electricity Regulatory Commission (NERC) held in Abuja on Thursday, with the theme “Strengthening Power Sector Governance for a Sustainable Future.”
Adelabu, who was represented by Mr Mustapha Babaumara, Director of Distribution at the Ministry of Power, said the federal government’s vision for the sector was anchored on the principle of cooperative federalism.
According to him, the goal is to ensure that both tiers of government work harmoniously for the common good and sustainable development of Nigeria’s electricity industry.
“To this end, we are developing a National Electricity Policy Coordination Framework to ensure consistency and regulatory clarity align with federal and state actions, support states in establishing new regulators to strengthen investor confidence through policy.
“While states develop their markets, we must work collaboratively to ensure a degree of standardisation and interoperability.
“The National Integrated Electricity Policy and Strategic Implementation Plan (NIEPSIP) of the Federal Government, through the Ministry of Power, provides a planning framework to strengthen the relationship between the federal and the states’ electricity markets.
“ It also promotes a collaborative yet decentralised approach to energy management and resources, ‘’he said.
The minister, however, said that NERC’s ongoing efforts to coordinate with state regulators, as seen in the peer-learning sessions with states and the transfer of oversight to them, were exemplary and critical for national cohesion.
“ As NERC marks two decades of service, we celebrate an institution that has embodied professionalism, resilience, and vision.
“Let this anniversary inspire a renewed commitment to collaboration between the federal and state governments, between regulators and operators, between public institutions and private investors.
“This milestone offers a crucial moment for reflection and forward-thinking as we navigate the evolving landscape of our power sector.
“Together, we can build a power sector that truly lights up Nigeria –prosperity, powering industries, energising communities and driving national attention,” he said.
Also speaking, the former President of the African Development Bank (AfDB), Dr Akinwumi Adesina, said that Nigerians themselves held the key to solving the country’s electricity challenges.
Adesina, who was represented by Mr Kola Adesina, Group Managing Director of Sahara Power Group, therefore called on those in leadership positions to protect and support local investors.
According to him, charity must begin at home.
“If we treat our own with levity and dignify foreigners, we are only destroying ourselves and our future,” he said.
Adesina further noted that most states lacked the financial capacity to develop electricity infrastructure.
He added that there was a need to review certain sections of the 2023 Electricity Act to ensure a more resilient power sector capable of attracting the necessary investments
”Today, the Electricity Act has elements in it that need to be remedied very quickly. The states don’t possess the wherewithal to build electricity infrastructure.
“ Let’s call a spade a spade. They don’t have the resources. , when you are breaking down inefficiency into another level of inefficiency, you are only spreading the virus.
”So, the best way is for us to really look at this issue and ask ourselves, how did we get here? Why are we here? If there is alignment across the board, I can assure you money will flow in easily,” he said.
Adesina, however, said that to achieve the urgently needed influx of investment in the sector, it was imperative for the government to ensure policy consistency and stability.
”There must be stability in the system. We must see the hunger and the desire in the leadership in resolving the current problem that would engender more investment to be made by us,” he said.
Earlier, Vice Chairman of NERC, Mr Musiliu Oseni, said that the commission had created a Transmission Infrastructure Fund to increase investment in that segment of the power sector.
“As we continuously strive to provide regulatory oversight to ensure improved reliability of supply, the commission shall focus more attention on unlocking private investments, especially in the transmission segment of the value chain.
“Our transmission networks require significant investments.
“However, our fiscal realities have shown that the government alone cannot fund it. Necessary regulatory framework will go a long way in attracting private investments. ‘’he said.
Oseni said that the commission would continue the regulatory process for the transition to bilateral trading and would provide handholding to state regulatory commissions for capacity development.
He also said that the commission has had its fair share of challenges and has often faced opposition from stakeholders in the course of delivering on its constitutional mandates.
Oseni said that in spite of the challenges, the commission had recorded significant achievements in its two decades of existence.
He recalled that the commission oversaw the privatisation and unbundling of the former state-owned monopoly, and developed regulations to strengthen the market, improve reliability, and protect consumers.
“Relative to 20years ago, not less than 30 per cent of the electricity consumers have experienced significant improvement in their electricity services.
“Through effective regulation, the commission has saved the federal government several trillion naira in subsidies, thereby contributing to the improved fiscal position of the country.
“Many individuals and institutions have contributed immensely since the beginning of this journey.
“We express our profound appreciation to all the stakeholders that have either contributed to the power sector reform journey or have supported the work of the commission since inception, ‘’ he said.
The News Agency of Nigeria (NAN) reports that former Ministers of Power and former NERC Chairmen also took part in a special panel discussion.
The session was “entitled “Power Sector Regulation in Nigeria – An Art or Science?”, reflecting on two decades of regulatory evolution and lessons learned.
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