The Nigerian President introduced his third Minister of Power on the 1st of September.
Dear Engr. Abubakar Aliyu, Congratulations on this new seat; it’s an electric one that could change Nigeria’s economic prospects.
But while you settle in and prepare for the inherited tariff raise set to happen this year, here are five things I think you should know as the Minister of Power of Nigeria with a national grid that has not supplied 5,800MW.
Drop the divide and conquer sledge
- Over the past years since privatisation, the blame game across the industry has been nothing but catastrophic, from GenCos to NBET refusing to see eye to eye on the cause of the liquidity crisis; to the DisCos and TCN trading blames on whose fault the latest grid collapse is. Instead, the power sector works on collaboration, encouraging a market that works together, strengthening the sector and increasing energy access.
Nigeria’s 30:30:30 target and the SDG #7
- Besides, the Sustainable Development Goal, which Nigeria is ratified to, is set to meet increased energy access by 2030. Through its National Renewable Energy and Energy Efficiency Policy with the accompanying Vision, 30:30:30 aims to achieve 30,000MW of electricity by the year 2030 with renewable energy contributing 30 per cent of the energy mix. Therefore, alongside meeting the electricity demand for unserved communities, The Minister should be mindful of energy access even to the additional millions of under-served or disconnected from the national grid.
Hold on to pathways to solving the liquidity crisis.
- The liquidity crisis could take years to plunge out of, so while we get to the end, there is an opportunity for the Federal government to recapitalise its 40% ownership within Distribution companies. Let’s not forget, in 2019; the Senate suggested the Federal Government sell the 40% stake to foreign investors as an attempt to put an end to the cash challenges being faced. Recapitalisation would allow the federal government to raise 40% to upgrade power distribution equipment across 11 distribution companies, while respective investors address the other 60%.
Keeping your customers updated
- The Ministry of Power represents the entire system of electrification in Nigeria. To be silent or absent in rooms that elevate for electrification will be a missed opportunity to stay relevant and abreast. So, Minister, let your people go and participate, provide intel, and seek collaborations within Agencies as an attempt to provide a better-informed Ministry. For example, it’s time the Project Delivery Committee provide updates on Kashimbilla, the Katsina wind farm, the Siemens project, Mambilla and Zungeru hydropower projects, all of which could double the installed generation capacity if completed.
And lastly, this could be the start of something new.
- After one year and four months, the Transmission Company of Nigeria is still with an Acting MD with the entire board of the TCN yet to be inaugurated. At this point, a new board inauguration might be needed alongside a confirmed MD for the only Government-owned entity across the value chain. This could be the start of something new that reclaims, refocuses the electricity supply value chain.