The Minister of Power, Adebayo Adelabu, advocated for Commercialization instead of Privatization as the optimal approach for the Country during an Interaction with Journalists in Abuja.
He revealed that the Government is Investigating the extension of Licenses for distribution and emphasized the need for Improved Power Supply quality before any Electricity Tariff increase.
Adelabu lamented the overreliance on Diesel and premium Motor Spirit Generators for Electricity generation, accounting for over 90 percent of the Power generated in the Country.
Following the 2013 privatization of the Power Sector for $2.5 billion, the electricity Grid’s performance has fallen short of projections, with the current average hovering at 4,000MW compared to the anticipated 40,000MW by 2020.
The recent extension of 17 Licenses by the Nigerian Electricity Regulatory Commission (NERC) for five years is under scrutiny, with Adelabu asserting that the Legality of the process is being questioned and Investigated.
He underscored the need for a revised Performance agreement due to the Sector’s poor Performance.
Adelabu emphasized the Government’s focus on Off-grid Solutions and the forthcoming inclusion of Zungeru and other Hydropower Plants in the grid.
He also highlighted the government’s Consideration of small Hydropower Plants that can be easily dispatched without relying on the grid.
Adelabu underlined the urgency for Improved collection efficiency and emphasized the necessity for Collective and Collaborative efforts in developing a Roadmap for the Sector’s Improvement.
