Adebayo Adelabu, the Minister of Power, stated yesterday that commercialization would have been a better course of action for the nation than privatization.
During an interactive session with journalists in Abuja, the minister announced that the government had initiated investigations into the legality of extending the distribution licenses. It was emphasized that the license copy held by the Ministry of Power was scheduled to expire in December.
Adelabu revealed that a rise in electricity prices is not anticipated anytime soon because the nation’s political climate necessitates an improvement in the quality of the power supply.
He bemoaned the fact that diesel and premium motor spirit generators account for more than 90% of the nation’s electrical production, which he estimated to be between 50 and 90 megawatts.
Remember that on November 1, 2013, the Federal Government sold off the power industry for an astounding $2.5 billion through the Bureau of Public Enterprises. The country’s electrical grid, which was expected to reach 40,000 megawatts in 2020 with an annual investment of $3.5 billion, has been steadily declining since privatization. As of yesterday, it was averaging 4,000MW.
The Nigerian Electricity Regulatory Commission (NERC) revealed that the 17 licenses sold to the generation and distribution companies were extended by five years, despite the fact that the prior plan called for their revocation or renewal on the first of this month.
Adelabu stated that the extension was not carried out by the current administration or NERC management. He also mentioned that the legality of the decision is presently being contested and the investigative process is underway.
Nevertheless, Adelabu stated that the government would examine the performance agreement that was signed with the industry, emphasizing that a fresh agreement is needed in light of the industry’s dismal performance.
“I don’t believe privatization was the best course of action. I will stick to what I have said previously. Countries are aware of how vital energy is to development, and commercialization would have been ideal, according to Adelabu.
He said that while attempting to address the issues with electricity transmission, the Federal Government will give off-grid options priority.
Adelabu revealed that the Federal Government is considering giving priority to small hydro power plants that can be quickly dispatched without necessarily traveling through the grid, noting that Zungeru and several other hydro power plants would be added to the grid in the upcoming weeks.
Adelabu revealed that a collaborative and communal approach should be taken to address the sector’s problems, while also highlighting the need for improved collecting efficiency in the industry.
