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Nigeria power sector policies are outdated

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By Abdulwasiu Usman

There is a need to reconsider the policies and make amendments.

The power sector’s existing policy has been deemed outdated by the federal government, necessitating a reconfiguration to align with the present circumstances of the country. In his remark at the close of a three-day summit on finding resolution to Nigeria’s dilapidated power sector with industry players, held in Abuja, Chief Adebayo Adelabu, the Minister of Power, reiterated that Nigeria is currently applying the policies implemented during the administration of Olusegun Obasanjo in 2001. However, he emphasized the requirement to reconsider these policies and make necessary amendments.

It was noted that the retreat was an initial stride, in line with the Electricity Act, 2023, to lay the groundwork for the Integrated National Electricity Policy and Strategic Implementation Plan. The Power sector will witness a comprehensive overhaul that encompasses the gas supply to generating companies, transmission services, and independent system operators. This initiative aims to boost the operational efficiency of the Transmission Company of Nigeria (TCN), as well as extend its effects to the Distribution Companies (Discos) responsible for delivering power to customers.

Work will continue in all aspects of the value chain.

Despite the intimidating obstacles ahead, he assured that the ministry would confront them head-on with unwavering bravery. He elaborated on the upcoming plans, stating that the consumer consultations for January will address pressing matters such as infrastructure investments, metering gap, power assets vandalism, power theft, and collection difficulties. Rest assured, all these concerns will be effectively addressed. This sector will regain access to the capital it has been lacking. He went on to say that in order to distribute a large portion of power to consumers, the ministry will work to reduce the Aggregate Technical, Commercial, and Collection (ATC&C) losses of the Discos.

Adelabu believes that once there is an increase in liquidity, stakeholders can start seeing returns on their investments. He noted that despite the ongoing revision of policies, work will continue in all aspects of the value chain, adding that through the consultation, a set of effective industry policies to be agreed upon by all stakeholders will be developed. Through this, a long-lasting policy structure will be established within the industry. This process is ongoing and cannot be completed within a single day, he emphasized.

A comprehensive roadmap will be formulated by the government.

Furthermore, the minister stated that a comprehensive roadmap will be formulated by the government, which will garner the unanimous support of the entire industry and evolve into a permanent document. The minister said the document will encompass various aspects including technicalities, regulations, and the enhancement of human capabilities. In order to successfully realize the envisioned future for the power sector, it is imperative that only proficient individuals undertake its execution. He said government technocrats must step up their effort in order to ensure industry oversight, as the new sector’s law paves the way for state involvement in the sector.

In order to guarantee the smooth advancement of the project, the minister assured to obtain necessary authorizations from the president, the federal executive council, and any other required institutions. He commended the assembly for their tremendous enthusiasm exhibited over the course of three days of brainstorming, as it demonstrated their deep sense of patriotism and fervor in contributing towards the betterment of Nigeria. Mr. Temitope Fashedemi, the Permanent Secretary of the Ministry of Power, said the ministry plays a catalyst role for economic advancement and is committed to providing accessible and cost-effective electricity across the nation.

Industry companies urged to consider a larger landscape.

Fashedemi pointed out the importance for power sector companies to broaden their perspectives, urging them to consider not only their investments or short-term profits but also the larger landscape as the nation embarks on the transformation within the power sector. As you distance yourself from the standpoint solely focused on your investment or company’s benefit, and shift towards working alongside the President to accomplish this national goal, a noticeable transformation occurs in your perspective, he stated.

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2 months ago

Nigeria power sector policies are outdated. – There is a need to reconsider the policies and make amendments. – Express your point of view.

Adeoye Adegoke
2 months ago

I totally agree with you! It’s crucial for Nigeria’s power sector policies to keep up with the changing times. Outdated policies can hinder progress and limit the potential for growth and development in the sector.
Reconsidering and making amendments to these policies is essential to address the current challenges and meet the evolving needs of the country. By adopting more modern and forward-thinking policies, Nigeria can create a conducive environment for investment, innovation, and sustainable energy solutions.
Updating the power sector policies will not only help improve the reliability and efficiency of electricity supply but also attract private sector participation and encourage the development of renewable energy sources. This, in turn, can contribute to reducing dependency on fossil fuels, mitigating the impact of climate change, and ensuring a more sustainable and environmentally friendly energy future for Nigeria.
It’s important for policymakers to engage with experts, stakeholders, and the public to ensure that the amended policies align with the country’s energy goals and prioritize the needs of the people. By embracing change and embracing modernization, Nigeria can unlock the full potential of its power sector and provide reliable and affordable electricity to its citizens.
I’m hopeful that Nigeria will take the necessary steps to reconsider and update its power sector policies, leading to a more resilient, efficient, and sustainable energy landscape for the country. 💡🔌🇳🇬

2 months ago

In addition to improving TCN’s operational effectiveness, this project will also benefit Distribution Companies (Discos), which are in charge of supplying customers with electricity.mandate to review these guidelines and make any required changes.our power policy is outdated it will be good to update it because this is different from them so new policy should be implemente

2 months ago

Addressing the outdated power sector policies is crucial for the nation’s progress. The commitment to overhaul and modernize the sector, as outlined in the Electricity Act, 2023, reflects a positive step towards addressing challenges and ensuring a sustainable and efficient power supply. The emphasis on stakeholder consultations and a comprehensive roadmap demonstrates a commitment to the nation’s development. Encouraging power sector companies to consider the broader national landscape aligns with the goal of achieving a transformative impact for the benefit of all Nigerians.

2 months ago

Nigeria’s power industry policies are out of date. The policies need to be reevaluated and changed.It demonstrates just how outdated the energy industry has been. We must create policies that take into account the current power deficit.The efficiency and dependability of the supply of energy will be enhanced by updating the regulations governing the power industry.