The Nigerian
Economic Summit Group (NESG) has recommended a review of the privatisation of
the power sector.Minister of State for Budget and National Planning,
Zainab
Ahmed, disclosed this at the end of summit yesterday that the Federal
Government would raise a committee to implement the recommendations.
The summit,
which also recommended a review of electricity tariff, said it was necessary to
make the sector attractive to investors, just like the telecommunications
sector.
The NESG
added that the proposal would ensure the attainment and the optimisation of the
summit’s theme “Opportunities, productivity and employment, actualising the
economic recovery and growth plan (ERGP)
Ahmed
explained that a review of the electricity tariff would increase the sector to
what investors refer to as cost recovery level to attract investments.She added
that a review was needed in the distribution sub-sector, because it had
remained epileptic due to inadequate injection of capital by the current
concessionaire.
According to
her, the poor funding has made it difficult for effective metering and other
infrastructure to enhance delivery and supply of power and to boost productivity
and wealth creation in the country.The minister disclosed that the review would
begin with the Electricity Distribution Companies (DISCOs), which has been
noticed to be problematic.She said: “The recommendations would require the
stakeholders coming together to agree on what stake they would give off to the
new investors.
“As you are
aware, we have not had investors in the petroleum sector for almost seven years
because of the non-passage of the Petroleum Industry Bill (PIB), because
investors feel that the prices are not cost reflective enough.’’
Among other
recommendations is the removal of all regulations stifling the development of
off-grid electricity solutions, to encourage the use of renewable energy and
increase electricity access and reduce poverty
The NESG
urged also canvassed the promotion of willing buyer and seller agreements for
gas without government interventions on prices, and acceleration of investment
in gas and renewable energy by providing fiscal incentives like 10 years or more
tax holiday.
Meanwhile,
the immediate past President of the Federation of African Engineering
Organisations (FAEO), Mustapha Musa has explained the cause of power outage.
According to
him, the inability of the DISCO’s to remit money collected to Market Operators
(MO) and Nigeria Bulk Electricity Trading (NBET) is hindering stable power
supply in the country.
He stated
this in Abuja yesterday while speaking at a lecture with the theme “Energy
Situation In Africa: Opportunities and Challenges” at the 26th Nigerian Society
of Engineers (NSE).
He added
that the failure of Generating Companies (GENCOs) to pay for fuel have denied
suppliers the needed funds to maintain their plants.He added that the failure
of GENCO’s to pay for fuel denied the suppliers the needed funds to maintain
their plants and expand their networks adding that most of the operators have
delinquent credit exposures to banks.
0 Comments