Federal Government is making arrangements for the establishment of three gigawatts of solar energy sources across the 25 states in the north and southwest parts of the country.
Minister of Power, Adebayo Adelabu, made this known on Tuesday at a power sector stakeholders interactive dialogue/workshop organized by the House of Representatives Committee on Power with the theme, ‘Confronting Nigeria’s Power Challenge as the Nation Migrates to a Multi-tier Electricity Market: A Legislative Intervention’.
He explained that it is a novel approach that will go a long way in solving the power problems, urging state governments to invest in power generation in their states.
Adelabu also noted that hydro energy would be deployed for the coastal cities.
The Minister cited that the nation has witnessed incessant breakdowns in transmission, brought about by the absence of satisfactory infrastructure, adding that most of the infrastructure dates back to the 1960s.
He complained that there is no single backup for the national grid and called for alternative sources in the event of a breakdown of the grid.
Vice President Kashim Shettima also called on states to take a leading role in attracting investments in the electricity sector. He emphasized the need to recapitalize distribution companies and ensure a steady flow of investments towards increasing electricity access.
Shettima, represented by Sadiq Wanka, said the dialogue was timely as there is widespread recognition that the country is underperforming across all four pillars of providing electricity supply that is reliable, affordable, environmentally sustainable, and available to all Nigerians.
“Indeed, by some estimates, less than 20% of Nigerians have access to reliable energy for more than 12 hours per day. 45% of Nigerians have no access to any form of electricity. And as a result, households and industries have been dependent on self-generation which is both more expensive and more polluting.
“The Electricity Act 2023 that was passed by the National Assembly and signed into law by President Bola Ahmed Tinubu seeks to overhaul the structure of the Nigeria Electricity Supply Industry. It proposes a structure that promotes more competition and greater scope for tailoring power solutions to local needs while transitioning to a market structure that would attract much-needed investments and promote environmental sustainability.
“The wholesale structural shift that the Electricity Act 2023 (as amended) and the associated constitutional amendment usher in, means we need to double down on ensuring an orderly transition to the new national electricity market framework,” he said.
Shettima urged the National Assembly for its steadfastness in leading the conversation on the orderly transition and for demonstrating a willingness to review the recently passed Electricity Act as needed.
The Speaker of the House of Representatives, Tajudeen Abbas, commended the Committee for the relentless commitment and leadership in spearheading the legislative framework that supports the transformative agenda of the President.
He said this in line with our Legislative Agenda, which focus on economic growth and transformation of key sectors of the economy, especially power.
Abbas however said the forum and extensive consultations would have preceded the implementation of the new multi-tier electricity system.
He expressed concern that the current consultation seemed like an afterthought, conflicting with the Electricity Act of 2024, which mandates consultations with all relevant stakeholders to determine just and fair tariffs. The government’s objective, he emphasized, is to cultivate a resilient, efficient, and sustainable power sector capable of supporting the nation’s ambitious economic and developmental goals.
The speaker highlighted that the shift toward a multi-tier electricity market represents a strategic pivot in power sector reform. This model, he explained, envisions a structured market segmentation that allows for differential pricing and service levels tailored to diverse consumer needs and capacities. He noted that this approach promises enhanced efficiency through competitive practices, encourages investment by delineating clear market segments, and improves reliability and service delivery across the board.
He suggested that in charting the way forward, they should consider best practices and successful models from other countries that have implemented similar market structures. He added that a phased implementation involving the gradual introduction of market tiers allows for adjustments and learning.
Abbas emphasized that continuous engagement with all stakeholders is critical to ensuring that the reforms meet the diverse needs of the population and maintain public trust.
The Chairman of the committee, Hon Victor Nwokolo, stated that the aim was to provide a dynamic platform for stakeholders to evaluate the progress made so far in the development of the Nigerian Electricity Supply Industry (NESI). He explained that discussions would focus on the seamless transition to a Multi-Tier Electricity Market, as outlined in the Electricity Act of 2023. He believed that this transition holds immense potential to enhance competition, efficiency, and reliability within the electricity market, ultimately benefiting consumers and driving economic growth.
“Through collaborative brainstorming and analysis, we aim to chart a clear roadmap for this transition, ensuring that it is smooth, inclusive, and conducive to sustainable development.
“Furthermore, this workshop will serve as a platform for stakeholders to explore innovative solutions to the persistent challenges plaguing the power sector. From infrastructure development and financing to regulatory frameworks and consumer engagement, we will examine a wide array of issues and propose actionable strategies for improvement.
“In addition to these objectives, we aspire for this workshop to foster enhanced collaboration and partnership among stakeholders. By bringing together legislators, representatives from government agencies, regulatory bodies, industry players, academia, and civil society, we aim to cultivate a culture of cooperation and collective action towards our shared goal of a vibrant and resilient power sector,” he said.
