Hon. Adebayo Adelabu, the Minister of Power, has recently announced that the government is working on devising a new cost-reflective Electricity tariff system in order to increase liquidity within the power sector. In a statement issued in Abuja, the minister emphasized that the federal government will prioritize the affairs of low-income and vulnerable electricity consumers in Nigeria, ensuring that Subsidies are provided to bridge any anticipated discrepancy. The power sector’s illiquidity has been attributed to operators’ failure to align electricity Tariffs with prevailing economic circumstances, as claimed by numerous stakeholders.
Adelabu, in his New Year message, gave assurance to Nigerians that his ministry remains dedicated to put electricity supply as a top priority, aligning with President Bola Tinubu’s vision to revolutionize the power sector. He highlighted the unwavering efforts of the ministry, agencies, and Distribution Companies (DisCos) during the festive season, recognizing significant advancements in power supply. According to him, his first three months in office were dedicated toward analyzing the situation, engaging with stakeholders, and creating an effective plan, demonstrating the recognition of electricity for economic development.
Scarcity of funds remains a challenge in the electricity market.
He mentioned that now that a thoroughly detailed implementation strategy has been devised, it is now the appropriate moment to execute resolute measures. The main objective revolves around improving the distribution and transmission Infrastructure in order to reduce both technical and commercial losses. The scarcity of available funds remains a predominant challenge within the electricity market. As the ministry examines the execution procedure of a tariff that reflects the actual costs, the government’s support will persist in the provision of subsidized power to the vulnerable members of our society, he said.
The minister emphasized the significance of addressing the issue of metering, highlighting the urgency of narrowing the disparity. He clarified that various initiatives, such as those led by the World Bank and the Presidential Metering Initiatives, are currently underway and expected to gather momentum in the near future. Adelabu, speaking on behalf of the ministry, assured that they would intervene in the distribution infrastructure by providing transformers to communities, ensuring a minimal financial burden on citizens.
There is plans to divide transmission grid into regional segments.
Additionally, he emphasized that the focus on rural electrification would remain, targeting the implementation of solar-powered mini and micro grids as well as street lighting. This would be done in close partnership with Discos and state electricity boards to effectively cater to the specific local requirements. He went on to mention that the Siemens Project, also referred to as the Presidential Power Initiative, has been revived for the purpose of enhancing the transmission infrastructure and reducing technical losses.
Also, the ministry intends to execute the Eastern and Western super grid projects with the aim of fortifying the grid and bolstering electricity provision to the various demand hubs across the nation. The Transmission Company of Nigeria (TCN) is set to undergo a transformation soon, with plans to separate transmission services from system and market operations in the first quarter of this year. There is also a future plan to divide the transmission grid into regional segments for enhanced administration and efficiency over a considerable period of time. While government-owned plants aim to produce electricity at their maximum capacity, private companies are encouraged to increase their investments in this sector.
Combating power theft and preventing vandalism is crucial.
Emphasizing on off-grid and distributed generation with a focus on renewable sources, Adelabu suggested strategic deployment of solar photovoltaic plants, small hydro plants, and wind farms. Addressing the issue of power theft, the minister said combating this crime and preventing any acts of vandalism is crucial, adding that safeguarding our nation’s resources is a collective duty that demands collaborative endeavors. The minister pointed out the necessity of collective efforts to eradicate the prevailing setbacks, as the ministry has reported the recorded cases to the National Security Adviser (NSA).